The International Monetary Fund on Wednesday said it would keep in place sanctions on Zimbabwe because of money still owed the bank, and urged Harare to urgently implment reforms to stablise its economy.
The IMF executive board acknowledged that Zimbabwe had settled its General Resources Account (GRA) when it made a $9-millio payment which helped the Southern African nation retain its membership in the IMF.
However, the board noted Zimbabwe has owed since February 2001 about $119-million to the fund’s Poverty Reduction and Growth Facility Exogenous Shocks Facility Trust Fund.
In a statement the IMF board urged Harare ”to continue its efforts to resolve the remaining overdue financial obligations”, adding that Zimbabwe’s voting rights at the fund will remain suspended.
It said that another review of Zimbabwe’s obligations will take place within six months.
At the same time, the IMF said that Zimbabwe’s economic crisis ”calls for urgent implementation of a comprehensive policy package comprising several mutually reinforcing actions in the area of macroeconomic stabilisation and structural reforms”.
The body had threatened to expel Zimbabwe from its ranks for failing to pay back loans since 2001, but the Southern African country managed to bounce back after making a series of surprise payments since last September.
Zimbabwe is in the throes of economic crisis characterised by runaway inflation, soaring poverty levels, an unemployment rate hovering at over 70% and chronic shortages of fuel and basic goods like cornmeal.
Earlier this week Finance Minister Herbert Murerwa said that he hoped to gain more financial aid from the IMF in meetings in Washington the week.
”Although our voting rights have now been restored we need technical assistance and financial assistance,” said Murerwa before he and central bank governor Gideon Gono departed for Washington on Sunday.
”We know this will not be automatically restored but this is something we hope to negotiate,” he said. – Sapa-AFP