Zimbabwe raises IMF debt of US$50m

Zimbabwe raises IMF debt of US$50m

• IMF team leaves Zim ahead of board meeting

• Zimbabwe reveals source of IMF payments

• Zimbabwe pays IMF US$120 million

• IMF team still locked in Zim talks

• IMF team in Zimbabwe for talks

• IMF team says Zimbabwe outlook bleak

• Mugabe goes begging in China

• Zimbabwe faces economic meltdown

• IMF further delays Zim expulsion

• IMF shelves Zim expulsion

• 'Gono inflation target achievable' - Standard Bank

• Zim inflation deeps below 450pc

• Zim reports 78pc drop in inflation

• IMF team on surveillance mission in Zim

• Makamba nabbed in corruption blitz

By Staff Reporter

A ZIMBABWEAN delegation led by the Finance Minister and Reserve Bank governor flew out to Washington on Wednesday with a simple mission in mind -- to avert the country's expulsion from the International Monetary Fund (IMF).

Their job, daunting at the beginning of the week, appeared to have been made easier by news that the country had raised the $50m it needed to avoid expulsion from IMF.

Zimbabwe, which is facing expulsion from the IMF after failing to service its $295m debt, last week unexpectedly paid $120m. It needs to pay $174m to avoid expulsion.

The country's Finance Minister Herbert Murerwa and central bank governor Gideon Gono, personally took the $50m cheque to the IMF, according to the Business Day newspaper's Harare correspondent, Dumisani Muleya.

The paper said its sources indicated that the government had again raised the money from the local exporters’ foreign currency account, adding that the sending of the high-powered delegation symbolised "growing desperation" within the government about the prospect of being expelled.

In the past two days the government has made statements consistent with IMF recommendations for reviving the economy. On Monday Murerwa urged the government to drop price controls.

Before departing, Gono told Reuters news agency that he hoped the Fund would take into consideration "the sacrifices" made by the country to reduce its arrears.

"The jury is made up of people with a face, with feelings...I don't believe the modest payment will escape the natural attention and consideration of the esteemed board," Gono told Reuters.

The central bank chief said Zimbabwe would continue with its quarterly payments of $9 million to the Fund but could not say whether the figure would be increased.

Gono said negotiations for a loan from South Africa, reported to be around $470 million, were still ongoing.

The loan is widely expected to be used to pay the remaining IMF arrears and to procure fuel and agriculture inputs for the foreign currency starved country.

Zimbabwe's worst economic crisis since independence in 1980 has seen food and fuel shortages, inflation soar to three digits and the jobless rate rise above 70 percent.
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