Zimbabwe to repay IMF debt

Zimbabwe to repay IMF debt

Moyo

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By Agencies
02/03/04
ZIMBABWE will repay its long-standing debts to the International Monetary Fund (IMF) to avoid losing membership in the global lender, the state news agency quoted Information Minister Jonathan Moyo as saying on Monday.

Ziana quoted Moyo as saying Zimbabwe would repay the money it owes to the IMF in order to maintain membership in the lender, which he said "increases our credit rating".

The statement came after an IMF board late last year said it was initiating the compulsory withdrawal of the economically ravaged Southern African country from the body due to lack of cooperation and unpaid debt.

It notably cited arrears of more than $270-million running back almost three years.

"What we need to do is to stop the process of withdrawal. If you've got a debt, you must pay," Moyo said, according to Ziana.

However, he did not say when the government would start repaying the debt.

Zimbabwe owes foreign creditors more than $4-billion, according to official figures.

The country is currently in the grip of its worst economic crisis, with inflation at more than 622%, 70% unemployment and critical shortages of fuel, medicine and food.

As part of a new monetary policy aimed at reviving the economy and attracting investment, the government has said that it will
service its foreign debts.

Ziana reported Moyo as saying the IMF was impressed with Zimbabwean economic reforms and that he was confident the country would not be forced to withdraw. -- Sapa-AFP
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