The International Monetary Fund (IMF) has moved to expel Zimbabwe, citing a lack of cooperation and arrears of more than $270-million running back almost three years, the body said in a statement.
”The executive board of the IMF reviewed Zimbabwe’s overdue financial obligations to the Fund and decided to initiate the procedure on the compulsory withdrawal of Zimbabwe from the IMF after having determined that Zimbabwe had not actively cooperated with the IMF,” a statement posted on its website said.
The IMF board held a meeting in Washington on Wednesday to discuss the deteriorating economic situation in the southern African country.
Its gross domestic product has declined by about 40% between 1999 and 2003, and inflation rose to 526% in October.
Zimbabwe has not only been dogged by severe drought, but also political instability and a controversial land reform programme that saw almost 30% of white farmers being forced off their farms, causing major food shortages.
The IMF said Zimbabwe had been in continuous arrears since February 2001.
”As of end-November 2003, Zimbabwe’s arrears to the IMF amount to $273-million, or about 53% of its quota in the IMF,” the statement said.
Of the total amount of arrears, $110-million was overdue to the Poverty Reduction and Growth Facility (PRGF) Trust.
”Zimbabwe is the first and only country to have protracted overdue obligations to the PRGF Trust,” the statement said.
The executive board will review Zimbabwe’s overdue financial obligations to the IMG again within six months. – Sapa-AFP
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