THE European Commission has begun preparing economic reform aid for Zimbabwe. That’s after a standby arrangement Harare recently made with the International Monetary Fund, the head of an EU delegation said on Monday. Conditions for the grant include drastic cuts in domestic debt and the interest on it, reduction in the defence budget and acceleration of the privatisation programme. The EU said it hopes to see a serious reduction of domestic debt and of interest and a channelling of the savings on interest to social sectors. It also said that privatisation of loss-making parastatals should be accelerated. The commission is targetting next year for the release of the funds, but stressed that if targets are not met to an extent which jeopardises the programme, it will review the grant. Meanwhile it announced an immediate grant of $5,2-million dollars towards Zimbabwe’s land reform programme.