Zimbabwe

Zimbabwe pays IMF arrears, first step to restoring lending

2016-10-21 20:30
(iStock)

(iStock)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Washington - Zimbabwe has paid off 15 years of arrears with the International Monetary Fund, taking the first key step towards restoring its access to international loans.

The country paid off about $108m due to the IMF, and "is now current on all its financial obligations to the IMF", fund spokesperson Gerry Rice said in a statement late on Thursday.

Zimbabwe had been behind in its payments to the global crisis lender since 2001, Rice said.

The move is a positive first step for the country as it tries to stabilise its economy and finances, but does not automatically make it eligible for IMF lending.

It first must have a plan in place to clear arrears to other international financial institutions, the IMF said in a statement. This includes $1.1bn it owes to the World Bank.

The IMF has applauded Zimbabwe's reform efforts under a fund-monitored advisory program that ended in December 2015, which began to restore confidence and stabilise government finances.

But the commodity-dependent country has faced a decade-long crisis, and the IMF warns that without "bold reforms" the economic difficulties will continue.

Zimbabwe adopted the US dollar as its currency in 2009 to end hyperinflation. But the strong dollar has made its exports more expensive.

Unemployment is about 90% in Zimbabwe, which spends more than four-fifths of its revenue in the salaries of civil servants and is ranked by Transparency International as one the most corrupt countries in the world.

Read more on:    imf  |  zimbabwe  |  southern africa

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
X

SHARE:

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.