adminThe IMF said its decision was swayed by significant improvements made in Zimbabwe’s co-operation on economic policies and its renewed commitment to address its arrears.
Zimbabwe’s capacity constraints in the IMF’s core areas of expertise that represent a major risk to the implementation of Government’s macro-economic stabilisation programmes was another factor that influenced the decision.
“Adding to previous decisions easing restrictions on technical assistance to Zimbabwe, the Executive Board has decided to resume IMF technical assistance in certain new areas to support Zimbabwe’s formulation and implementation of a comprehensive adjustment and structural reform programme that can be monitored by the staff,” it said in a statement.
“The decision opens the way for Zimbabwe to agree on an economic programme that would be monitored by IMF staff. Such a Staff-Monitored Programme (SMP) would mark another significant step toward normalisation of Zimbabwe’s relations with the IMF.”
The technical assistance would be offered in tax policy and administration, public financial management and expenditure policy, financial sector reform and central bank reform.
Other areas include monetary and exchange policies, macro-economic statistics and any other area that would support the formulation and implementation of a comprehensive adjustment and reform programme that can be monitored by the staff.
The Bretton Woods institution suspended Zimbabwe’s voting rights in 2003 due to its indebtedness but restored them in 2010, allowing Zimbabwe to participate in IMF decision-making.
The decision would have made Zimbabwe eligible to use resources from IMF’s General Resources Account (GRA) but its arrears under the fund’s Poverty Reduction and Growth Trust (PRGT) mean the country cannot access the funds.
Zimbabwe owes various regional and international financiers over $10 billion. — New Ziana.
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