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IMF eases restrictions on Zimbabwe following COPAC conference
By Business Reporter

Published: October 30, 2012

Comment

(Harare)The international monetary has announced relaxing it’s restrictions on economic monitoring support to Zimbabwe.

Zimbabwe is to resume receiving support like most other countries in the world from the IMF with immediate effect despite defaulting in payments.

A statement released on Tuesday indicated the IMF are satisfied that Zimbabwe is on a definite promising path to economic and constitutional reform. It gave the impression that IMF honours the constitution making process under the parliament driven committee COPAC.

The statement released Tuesday stated:
“The executive board has decided to resume IMF technical assistance in certain new areas to support Zimbabwe’s formulation and implementation of a comprehensive adjustment and structural reform program that can be monitored by the staff.”

The IMF positive move comes despite an announcement by President Robert Mugabe last week in which he nullified COPAC’s authority claiming that only he and the other two principals have the last say on the constitution draft.

This positive development comes immediately after the country held its 2nd All Stakeholders Conference at the Rainbow Towers hotel last week just as the COPAC management vowed to continue with the drive despite resistance.

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IMF refuses new aid for Zimbabwe
By A-Correspondent

Published: July 2, 2009

Comment

The International Monetary Fund has told Zimbabwe that it will not provide the country with more funds until its existing $1bn debts are settled.

Zimbabwe’s government estimates it will need $10bn (£6bn) of foreign aid to help rebuild its battered economy.

But the IMF said that Zimbabwe would need to clear its debts and show a sustained record of sound policies before it could give financing.

China recently agreed to give Zimbabwe a loan of $950m.

China was one of the few countries to retain economic support for Zimbabwe in recent years.

The IMF said that Zimbabwe’s economic policies had improved and a “nascent economic recovery appears to be under way”.

Prime Minister Morgan Tsvangirai visited the US and Europe earlier this month in an attempt to raise funding for the struggling nation.

The US promised $73m in aid while the UK pledged to boost its funding by about $8m, taking its total to $98m for the year.

Mr Tsvangirai said he had received pledges totalling $500m during his trip. (Source: BBC)

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Zimbabwe Among African Nations Defaulting on IMF Loans-
By _

Published: September 13, 2012

Comment

Sebastian Mhofu|VOA| HARARE — The International Monetary Fund (IMF) says it is concerned by the failure of Sudan, Somalia and Zimbabwe to honor their commitments to pay their financial debts. This comes at a time when Zimbabwe’s finance minister says he expects some clemency from the IMF over Zimbabwe’s $10 billion external debt.

In a report entitled Review of the Fund’s Strategy on Overdue Financial Obligations released this week, the IMF said Zimbabwe and the war-ravaged nations of Sudan and Somalia are the three African defaulting countries.

Somalia and Sudan have accumulated obligations dating back to the mid-1980s, while Zimbabwe has been in arrears since 2001.

Ahead of the report’s release, Zimbabwean Finance Minister Tendai Biti said he hoped the IMF would announce good news next week to the African nation, which has a $10 billion debt.

“We believe that our macro-economic fundamentals are sound, and that there is no reason at all why a positive decision would not be made in our favor,” he said. “The importance of that IMF decision is that it will enable us to deal with the key issues of arrears that are the hindrance, [as] are sanctions, against Zimbabwe accessing huge levels of capital finance at the World Bank and the African Development [Bank].”

Recently, Zimbabwe’s government refused to adopt the Highly Indebted Poor Countries (HIPC) status, which would have resulted in the country mortgaging its mineral resources against its huge debt.

Zimbabwe Among Poor African Nations Defaulting on IMF Loans
Zimbabwe’s agricultural-based economy took a nosedive in early 2000 when the country embarked on a chaotic and violent land reform exercise targeting white commercial farmers, seizing their farms, and replacing many of them with peasant farmers.

After a decade of decline, the country has improved somewhat since the creation of a unity government in 2009. But Biti has said the recovery will remain weak and precarious until Zimbabwe receives international assistance to get its industries back on track.

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IMF wants Biti to handle all diamond dealings
By _

Published: June 9, 2011

Comment

HARARE – The International Monetary Fund wants Finance Minister Tendai Biti to handle all diamond transactions by transferring the administration of the Zimbabwe Mining Development Corporation to his ministry.

The Bretton Woods institution wants this captured in the Diamonds Revenue Bill that is now before Cabinet and expected to be sent to Parliament soon for consideration. The IMF proposal follows indications by Prime Minister Morgan Tsvangirai that Zimbabwe will use revenue from diamond sales to repay part of its external debt totalling $7.1 billion.
Zimbabwe is following a strict IMF prescription that has restored sanity to the central bank and seen the country’s voting rights restored after a seven-year suspension, a step toward normalizing relations with major donors. Zimbabwe is, however, not eligible for financial aid until it clears its arrears, about $1,3billion, to the Fund, the World Bank and African Development Bank.

A letter from a consultant drafting the Diamond Revenue Bill, Brian Crozier, to Biti (seen by The Zimbabwean) says: “The IMF chief of mission suggested an amendment to the ZMDC Act in order to give you power to direct the disposition of the corporation’s revenues.”

He said he had inserted a new section, giving Biti power to issue directives which will in effect place the ZMDC under the supervision of the mMinistry of Finance and ZimRA. Zimbabwe plans to seek relief for 68 percent of its debt from foreign lenders and pay the remainder using proceeds from minerals such as diamonds and platinum.

The resolution of the debt is crucial for Zimbabwe to return to the international community. The Diamond Revenue Bill is set to stir intense debate when it is tabled in Parliament. Biti was not immediately available for comment. Critics say the ministry of Finance should steer clear of the mining sector and leave the ministry of Mines to handle all mining.