Zimbabwe has cleared its arrears to the International Monetary Fund (IMF), Harare’s Herald newspaper reported on Thursday.
Its website said the Reserve Bank of Zimbabwe paid the outstanding $9-million on Wednesday to settle its overdue obligations in the general resources account. This put to an end the risk of Zimbabwe being expelled from the IMF.
The fund’s MD, Rodrigo de Rato, told the IMF executive board that he will withdraw his complaint against Zimbabwe. He said the fund will cancel the compulsory withdrawal procedure initiated in February 2004 following Zimbabwe’s failure to settle its overdue obligations.
”As you know, this complaint was first presented to the board on February 6 2004, and has been considered by the board on three occasions, the last time on September 9 2005,” De Rato was quoted as saying.
”Accordingly, the managing director will shortly be circulating to the board a notification of the withdrawal of his complaint, thereby cancelling the compulsory withdrawal procedure.”
The Herald said the IMF is satisfied that the payments were made from legitimate sources.
Zimbabwe, however, still has arrears to the Poverty Reduction and Growth Facility-Exogenous Shocks Facility Trust amounting to about 83-million special drawing rights, or about $119-million. Arrears on this fund cannot lead to expulsion, although other action can be taken.
The next periodic review of Zimbabwe’s arrears to the IMF has been scheduled for March 8.
On that occasion, De Rato said, the directors will have an opportunity to consider the remaining sanctions related to Zimbabwe’s arrears, the Herald reported. — Sapa