The IMF, which cut support in 1999 because of differences with President Robert Mugabe over fiscal policy and other governance issues, resumed technical support to Zimbabwe after the veteran President formed last year a coalition government with former opposition foe Morgan Tsvangirai.
The fund restored Zimbabwe's voting rights last February, ending a seven-year suspension, but ruled out any financial assistance until Harare clears about $140 million in arrears and shows consistent economic reforms
But permanent secretary in the Ministry of Finance Willard Manungo said the IMF has stepped up technical aid to the country that is battling to emerge from a decade of acute recession and political strife.
“Our engagement with the IMF is now accelerated as they will be now coming here more often. It’s the same team which came here for the Article IV consultation. These are ongoing consultations between the fund and ourselves,” said Manungo as the IMF team that arrived in Harare last week was winding up the visit.
Zimbabwe’s cash-strapped government desperately requires international support for reconstruction.
The IMF has warned of “debt distress” in the southern African country burdened with arrears of more than US$4.5 billion and urged Mugabe and Tsvangirai’s shaky coalition to strictly adhere to sound policies would help its case for foreign debt cancelled and to lure much-needed economic assistance from donors.
Some IMF board members have also suggested introducing a staff-monitored programme (SMP) for Zimbabwe as way to help establish a track record of sound policies.
An SMP would see Harare surrendering to the Bretton Woods institution some of its independence in economic formulation and implementation.
Similar programmes have been introduced in other crisis-torn countries, including Sudan, Togo, Liberia, Republic of Congo and the Former Yugoslav Republic of Macedonia. – ZimOnline.
