Zim’s IMF funds lie idle

Fund in 2009 under the Special Drawing Rights.
The Finance Ministry this week in an update said an additional US$140 million has been earmarked to settle the country’s obligation to the IMF’s Poverty Reduction and Growth Facility.
The SDR is the IMF’s currency issued to member countries.

Out of the US$505 million, US$411,9 million was under the General SDR allocation, while the special allocation of US$93,1 million was escrowed pending clearance of the outstanding arrears to the PRGF-Trust amounting to US$142,1 million.
The largest chunk of the funds amounting to US$215 million would be maintained at the IMF as national reserves.

According to the update, the US$150 million was directed towards the procurement of agricultural inputs during the 2009/2010 summer cropping season and infrastructure projects.
The money was first drawn down in December 2009, amounting to US$100 million and the remainder was last drawn in February 2010.
Fifty million US dollars was directed towards the 2009/2010 cropping season, US$80,46 million for infrastructure projects and US$19,54 million was allocated to the Zimbabwe Economic and Trade Revival

Facility administered by Interfin Bank for lines of credit, according to the update.
ZETRF has a total of US$70 million through a partnership between Government and the Africa Export and Import Bank.
Since the launch of ZETRF last year only US$10 million has so far been disbursed despite an acute shortage of liquidity on the market.
A total of 14 projects benefited from the US$80,46 million allocated to infrastructure development with the biggest chunk of the money going towards the rehabilitation of Hwange Thermal Power Station, getting US$10 million.

Other major projects included the National Railways of Zimbabwe rehabilitation of track, rolling stock, signalling and communication equipment.
Harare International Airport and Bulawayo’s Joshua Mqabuko International Airport got a combined US$18,1 million.
Other beneficiaries included the Harare-Gweru and Harare Masvingo dualisation projects.

The funds were accessed through the Infrastructure Development Bank of Zimbabwe, which was also monitoring the projects.
Out of the US$80,4 million a total of US$72,3 million has been utilised. Marondera Town Council, Bulawayo City Council and the Central Registry are yet to utilise their allocations.
Zimbabwe’s membership to the IMF and the World Bank is regulated by the International Financial Organisations Act.