IMF still monitoring Zim progress

via IMF still monitoring Zim progress November 25, 2013 by Victoria Mtomba  NewsDay

DISCUSSIONS on the progress of the International Monetary Fund (IMF), Staff-Monitored Programme (SMP) will continue until next month when the government will give a report, sources have said.

According to sources privy to the goings-on, discussions between government and the IMF have continued after the visit of an IMF delegation early this month.

“Progress was noted in some of the things that were set on the SMP, but the review is still on. The dialogue between the IMF and government will continue until December. After the review a publication will be made,” the source said.

The supervised economic reform plan, SMP, is supposed to end next month having run from June.

The SMP is an informal agreement between a country’s authorities and the IMF staff to monitor the implementation of economic programmes. The SMP was adopted this year after the inclusive government decided to re-engage the multilateral institutions.

It is a key component of the Zimbabwe Accelerated Arrears Clearance, Debt and Development Strategy and Zimbabwe Accelerated Re-engagement Economic Programme.

Speaking at the AMH Conversations held recently, World Bank Zimbabwe country manager Nginya Mungai Lenneiye said during the IMF meetings, Finance minister Patrick Chinamasa said the country was in a crisis although it had mineral resources.

Lenneiye said Chinamasa asked the IMF to lend the country money through the private sector that would grow the economy and pay taxes to government.

The country owes multilateral institutions $10,7 billion and it has no capacity to pay the debts.

Zimbabwe through the SMP is expected to ensure that diamond revenue is remitted to Treasury and that the diamonds be sold through a government agent.