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IMF
Executive Board upholds sanctions against Zimbabwe
International Monetary Fund (IMF)
Press Release No. 06/45
March 08, 2006
http://www.imf.org/external/np/sec/pr/2006/pr0645.htm
The Executive
Board of the International Monetary Fund (IMF) met today to review
Zimbabwe's overdue financial obligations to the Fund and consider
the sanctions imposed on Zimbabwe. The Board noted that as a result
of Zimbabwe's full settlement of its arrears to the IMF's General
Resources Account (GRA),1 the Managing Director had withdrawn his
complaint with respect to compulsory withdrawal (see Press Release
No. 06/33). Following the discussion, the Executive Board decided
not to restore Zimbabwe's voting and related rights and not to terminate
its ineligibility to use the general resources of the Fund at this
juncture.
The Board also
considered issues related to Zimbabwe's outstanding arrears to the
Poverty Reduction and Growth Facility (PRGF)-Exogenous Shocks Facility
(ESF) Trust Fund.2 It noted that Zimbabwe's economic crisis calls
for urgent implementation of a comprehensive policy package comprising
several mutually reinforcing actions in the area of macroeconomic
stabilization and structural reforms. The Board urged Zimbabwe to
continue its efforts to resolve the remaining overdue financial
obligations to the PRGF-ESF Trust, and agreed that the Fund will
consider further Zimbabwe's overdue financial obligations to the
PRGF-ESF Trust within six months of the date of this decision.
Because GRA
and PRGF arrears are subject to separate legal frameworks, the various
decisions taken by the Executive Board to address outstanding arrears
to the PRGF-ESF Trust remain in place. Therefore, Zimbabwe remains
excluded from the list of PRGF-eligible countries (see Press Release
No. 01/40).
Zimbabwe has
been in continuous arrears since February 2001 and is the only case
of protracted arrears to the PRGF-ESF Trust, which currently amount
to SDR 83 million (about US$119 million).
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