IMF to offer 'technical assistance' to Zimbabwe

IMF to offer 'technical assistance' to Zimbabwe

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• IMF sets conditions for Zimbabwe lending

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• IMF tells Zimbabwe to cut down on spending

By Lebo Nkatazo
Posted to the web: 27/04/2009 12:27:22
THE board of the International Monetary Fund (IMF) was meeting on Monday to discuss Zimbabwe, an official said.

The IMF’s Africa Department Director Antoinette Sayeh added that the financial institution is satisfied with the progress made so far by the inclusive government and as such it would offer “small, technical assistance” in due course and encouraged other donors to follow suit.

The IMF suspended loans to Zimbabwe over an unpaid debt and the central bank's rejection of advice from the Fund.

“In Zimbabwe specifically, there are some encouraging developments, as you know, coming out of the agreement earlier this year to put in place a coalition government. We've just actually had a mission to Zimbabwe. The report on that mission will be discussed by our board on May 4th,” the IMF regional director said.

Sayeh said the decision by the unity government of President Robert Mugabe and Prime Minister Morgan Tsvangirai to dollarize had put an end to hyperinflation and crippled the central bank's ability to print money for purposes of financing expenditures outside of the budget – the main driver of inflation.

She added: “And it's the context in which we think there's a window of opportunity in Zimbabwe that is worthy of support by the international community. We, for our part, are hoping to help in the ways we can currently, and those are mostly through policy advice, our Article IV discussion with the authorities was one form.

“We're hoping to do some small, technical assistance in the key areas of the Fund's mandate, and we encourage others to do the same. And we'll work with the Zimbabwean authorities to continue to make progress on the reform effort.”

Zimbabwe has said it needs up of US$8 billion over the next few months to kickstart its economic revival efforts. Finance Minister Tendai Biti is in the United States for meetings with IMF, World Bank and State Department officials to lobby for critical financial support.
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