by DANAI MWARUMBWA
HARARE, (CAJ News) – THE International Monetary Fund (IMF) would not be providing financial support to Zimbabwe due to an unsustainable debt and official external arrears.
This is despite the organisation praising efforts by the government to resuscitate the economy.
IMF thus said it was precluded from providing support.
Dhaneshwar Ghura, IMF Mission Chief for Zimbabwe, said financial arrangement would require “a clear path to comprehensive restructuring of Zimbabwe’s external debt, including the clearance of arrears and obtaining financing assurances from creditors; a reform plan that is consistent with macroeconomic stability, sustainable growth, and poverty reduction.”
He also proposed a “reinforcement of the social safety net; and governance and transparency reforms” on the part of President Emmerson Mnangagwa’s government.
Ghura spoke as IMF staff concluded a virtual Article IV Mission to Zimbabwe.
Nonetheless, he said Zimbabwe had been a Fund member in good standing since it cleared its outstanding arrears to the Poverty Reduction and Growth Trust (PRGT) in late 2016.
“The Fund engages the authorities in close policy dialogue and provides extensive technical assistance in the areas of economic governance, fiscal policy and revenue administration, financial sector reforms, as well as macroeconomic statistics,” Ghura assured.
The IMF staff held meetings with Minister of Finance and Economic Development, Mthuli Ncube, his Permanent Secretary, George Guvamatanga, the Reserve Bank of Zimbabwe Governor, John Mangudya, members of Parliament, representatives of the private sector and civil society, and Zimbabwe’s development partners.
The Southern African nation is in dire need of finance to resuscitate its economy.
– CAJ News