Zim external debt precarious: IMF

via Zim external debt precarious: IMF 23 June 2014

THE International Monetary Fund on Monday warned Zimbabwe’s economy remains fragile with a “precarious” level of external debt that needs to be addressed.

“Zimbabwe’s fragile economic situation characterised by a growth slowdown, a large external deficit, and low international reserves,” the IMF said.

“Zimbabwe’s external position remains precarious, with usable international reserves covering less than two weeks of imports,” the Fund said in a regular “Article IV” report on the state of the economy.

It urged Harare to clear its over $10 billion debt, to “avoid selective debt service” and improve the business environment.

The IMF resumed its programme with Zimbabwe last year, shortly before crunch polls extended President Robert Mugabe’s 30-plus-year rule.

Zimbabwe was stripped of its voting rights by the IMF in 2003 and nearly got expelled, a rare move for the Washington-based institution.

But in 2012, the IMF relaxed its restrictions on providing consulting support to Zimbabwe as the country moved towards constitutional reforms and showed improvement in economic policy cooperation with the Fund.

Zimbabwe mid-last year owed the IMF $125.3 million in loan and interest payments.

Mugabe’s indigenisation policies – which require local majority ownership of companies – has scared off much needed foreign investment.

High unemployment and power and water cuts have also taken their toll.

COMMENTS

WORDPRESS: 5
  • comment-avatar

    Cynical on whether the $10 billion was really used for the people,given the rapacious characteristics of our politicians.I extrapolate the opposite.Isn’t it part of the one that was used on the inexplicable DRC war involvement,or that one maybe that bought away our erstwhile war veterans to solely Zanu PF.Hope Zimbabweans will prevail from this putative injustice and find the way out.Ditto,the truth is not immutable but subject to a process of discovery.Oneday we shall know.

  • comment-avatar
    John Thomas 6 years ago

    Anybody who lent money to ZANU should not be repaid therefore the external debt is negligible. You want to lend money looting criminal murderers do not cry when you loose it all.

  • comment-avatar
    Guvnor 6 years ago

    The starting point is to stop borrowing and spending money you dont have.

  • comment-avatar
    Justice 6 years ago

    I agree JT however that should not stop them pursuing individuals who have amassed obscene wealth on the back of looting government funds all of which was borrowed.

  • comment-avatar
    Mukadota 6 years ago

    Ah but it’s ok; don’t stress brothers, kuti we’re about to legalize shebeens so that will fix the economy and make us all rich and fat with plenty of zesa and water for everyone. Chokwadi!!!!!!!!!
    Zanupf economic genius!