Zimbabwe has averted expulsion from the International Monetary Fund with a fresh payment on its debt arrears but is far from gaining good standing with the global lender, economists said on Thursday.
”It’s good that we have met a part of our obligations to one of our lenders but we are years late and this does not qualify us for more funding from the IMF,” independent economist John Robertson told Agence France-Presse.
”We are still far from gaining good standing with the IMF. We have got to make a lot of commitments that we will be able to repay new loans and change a lot of political policies that led to our economic problems.”
Deputy Finance Minister David Chapfika said the latest payment of $9-million would help Zimbabwe retain its membership with the IMF.
The body had threatened to expel Zimbabwe from its ranks for failing to pay back loans since 2001 and had given the Southern African country until February to settle its accounts.
”We paid them and we have said we would want to settle the IMF debt and other external arrears this year,” Chapfika said following the payment made on Wednesday.
”One thing which is clear is that we will continue to be a member of the IMF, but we will only get technical assistance and cooperation,” said independent economist Witness Chinyama.
”There are certain targets such as exchange rate targets, monetary policy, and money supply which still have to be addressed.”
Economist Bernard Mufute of the Confederation of Zimbabwean industries said Zimbabwe still needed to change some of its economic policies and rein in the country’s inflation in order to mend its relations with the IMF.
The deputy finance minister said Zimbabwe did not expect to gain immediate access to IMF financial assistance because of ”political issues”.
”There are some countries who owe the IMF more than we do but they are not pressurised, like they do to us,” the deputy minister added.
An IMF team visited Zimbabwe early in February and expressed concern over continued land seizures under controversial land reforms, the controlled foreign currency market and galloping inflation which stood at 613% in January.
Lands Minister Didymus Mutasa last week scoffed at the suggestion that Zimbabwe would have to halt its seizures of white-owned farms to recover its good standing with the IMF.
”The IMF should advise us on monetary matters. They should leave agricultural affairs to our minister of agriculture,” he said.
President Robert Mugabe, in power since independence in 1980, launched a fast-track land reform programme in 2000 in which about 4 000 farms were seized from white farmers and given to landless farmers.
The IMF issued a statement from Washington, confirming that the payment had been made.
”Zimbabwe made a further payment of nine million dollars to the International Monetary Fund thereby settling its remaining overdue financial obligations to the General Resources Account.
”Zimbabwe still has substantial overdue obligations to the Poverty Reduction and Growth Facility amounting to $119-million,” it said. – Sapa-AFP