Zimbabwe’s external debt hampering her access to funds- IMF

President of Zimbabwe
Robert Mugabe, former President of Zimbabwe

The IMF approved a SMP for Zimbabwe.

The International Monetary Fund (IMF), said Zimbabwe’s high external debt profile is responsible for the country’s inability to access its facilities.

This is contained in a statement issued by the IMF after it approved a Staff-Monitored Programme (SMP) for Zimbabwe covering April to December 2013.

An SMP is an informal agreement between country’s authorities and fund staff to monitor the implementation of economic programme. SMP agreements do not entail financial assistance or endorsement by the Fund’s Executive Board.

The SMP is Zimbabwe’s first IMF agreement in more than a decade.

The statement said that Zimbabwe’s external debt was in arrears, cutting it off from accessing most external financing sources.

“In particular, Zimbabwe remains unable to access IMF resources because of its continued arrears to the Fund,’’ it said.

It called on the country to evolve a method of maintaining macro-economic stability and implementing reforms as well as a comprehensive arrears clearance strategy.

“This should be supported by development partners, it will really be essential for resolving Zimbabwe’s large debt overhang.

“A successful implementation of the SMP would be an important stepping stone toward helping Zimbabwe re-engage with the international community,’’ it said.

The statement said Zimbabwe had made considerable progress in stabilising the economy since the end of hyper-inflation in 2009.

“Since then, GDP has grown by an average of over seven per cent and inflation has remained in the low single digits, thanks largely to the multi-currency system.

“Government revenues have more than doubled from 16 per cent of GDP in 2009 to an estimated 36 per cent of GDP in 2012, allowing the restoration of basic public services,’’ it said.

The SMP focuses to put public finances on a sustainable course, while protecting infrastructure investment and priority social spending.



Support PREMIUM TIMES' journalism of integrity and credibility


Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.


NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required


Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: New Discovery! Click Here To See A Miracle Device That Can Cure DIABETES, BLOOD PRESSURE, STROKE, ARTHRITIS, PAINS, OBESITY And 50 Other CHRONIC DISEASES Without Drugs Or Herbs.. Click Here Now To See It

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.