IMF plan may relieve Zim: AfDB

HARARE - Full implementation of the International Monetary Fund (IMF)’s Staff Monitored Programme (SMP) in Zimbabwe will help reduce the country’s indebtedness, the African Development Bank (AfDB) says.

The regional institution said, in its September 2013 monthly economic review, that adoption of the SMP will also unlock new inflows into the investment-starved country and also provide direction to execute macro-economic policy.

Economic analysts say Zimbabwe needs to urgently deal with its external debt which has ballooned to a staggering $11 billion.

Under the SMP, Zimbabwe needs to increase financial consolidation, strengthen public financial management, improve transparency in revenue collection in the mining sector and reform  tax policy and administration.

This comes as the move by IMF to reengage Zimbabwe in June this year marked a major step towards the country normalising relations with the international lender, which suspended its voting rights in 2003.

While its voting rights were restored in 2010, Zimbabwe has not been able to borrow from international lenders since 1999, when it started defaulting on its debt.

According to a recent report by deputy Finance minister Samuel Undenge, as at December 31, 2012, the preliminary figures of the public and publicly guaranteed external debt outstanding (exclusive of reserve bank and private sector debt) stood at six billion dollars, 62 percent of GDP.

The stock of accumulated arrears accounted for $4,7 billion (seven percent) of total debt stock.

Comments (5)

Kana pasina chekuisa muhomwe mangu it does not work this is ZanuPf mentality. As long as they want to fix the national economy not my pocket they can go hang.

Maita Manyuka - 6 November 2013

Very retrogressive thinking indeed Maita. Do you want government to come and put money in your pocket? The economy is simply a collection of households. You need to make sure you are contributing to economic growth. All government can ever do is provide an enabling environment for you to go about your business and that is what the IMF program is ideally meant to achieve. Stop complaining and do something.

Tawanda - 6 November 2013

Nhai Tawanda uri kurasika papi. What Maita is trying to say is that the government does not worry, if the ministers and staff do not benefit hence they are not doing anything about the IMF loans. The government is not worried since they are getting whatever they want whilst the majority are suffering. The MP want cars worth 60000 each whilst the loans are not being serviced.

Asekuru - 6 November 2013

this is a continuation of structural adjustment program by other means.dont trust these international financial lenders as they want underdevelopment of developing countries.but the fact is we cant survive without them

britelite - 6 November 2013

BOREHOLES and IRRIGATION engineers zim.engineers@gmail.com

098765redcvhjn n - 7 November 2013

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