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Inclusive government - Index of articles
Zimbabwe-IMF in renewed courtship
Zimbabwe Coalition on Debt and Development (ZIMCODD)
May 12, 2009
Protracted efforts to seek funding to resuscitate Zimbabwe's economy under
the Inclusive Government (IG) have seen the IG seeking to mend relationships
with the IMF and the wide international community. According the to the
IMF Country Report No. 09/139 dated May 2009 discussions between the IG
and IMF in the context of the 2009 Article IV consultations were concluded
on March 23 with the following highlights:
- The IG have embarked
on structural reforms including price liberalization, discontinuation
of the foreign exchange surrender requirements and restrictions, abolition
of the Grain Marketing Board, and imposition of hard budget constraints
on parastatal enterprises.
- The government
is seeking technical advice from the World Bank on other aspects of
the reform agenda, including privatization.
- The Short
Term Emergency Recovery Programme STERP recognizes the urgency of
dealing with the general concern regarding property rights and the rule
of law.
- For complete Success
of these reforms, the IG is counting on firm support from the Fund,
other International Financial Institutions (IFIs) and development partners
to complement their efforts. The IMF acknowledges that, "economic
turnaround would not be possible without foreign assistance and private
capital flows, even assuming sound policy implementation". Meanwhile,
the IG has pledged full cooperation with the Fund.
- Zimbabwe stands
ready to strengthen its cooperation with the Fund and other relevant
partners by continuing to build and establish a credible record of strong
policy implementation to ensure macroeconomic stability, entrench reforms,
collaborate on debt sustainability work, and meet financial obligations
to the Fund and other creditors under mutually agreed terms. The IG
authorities look forward to Zimbabwe's full integration into the Fund,
with all rights restored in the not too distant future.
Should this reunion
be fully implemented, Zimbabweans must brace themselves to tighten their
belts further, an experience reminiscent of the ESAP era. Already, Zimbabwe
Owes to the IMF and its total external debt amounts to US5, 1 billion.
Zimbabwe needs US$8 billion to resuscitate her economy. Should she borrow
to finance this deficit, then the external debt is likely to balloon to
a staggering US$13 billion. Should she comply with the IMF requirements,
then debt servicing would gobble resources at the expense of education,
healthcare and other social services already in dire strain. Is this the
Zimbabwe We Want?
Visit the ZIMCODD
fact
sheet
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