The international financial lending body, the International Monetary Fund (IMF), has renewed calls for more reforms in the countrys central bank, saying new loans are still not available for Zimbabwe.The IMF said in a statement on Tuesday that governance at the central bank must be strengthened and its role refocused after abandoning the local dollar in favour of international currency. Reserve Bank governor Gideon Gono, who presided over the collapse of the local dollar and heralded record levels of hyperinflation, remains at the helm of the bank. His presence as the banks chief is a major issue in the fragile unity government, and also has potential international investors concerned.
The IMF said that after consultations on Zimbabwe the Reserve Bank needed to appoint a board to strengthen governance, and adopt a budget that would downsize its operations.
Governance needs to be strengthened, including through appointment of a Reserve Bank of Zimbabwe (RBZ) governing board… and approval of an RBZ operating budget envisaging a significant downsizing and refocusing on core activities under the multi-currency system, it said in a statement. Zimbabwes economy grew by 4.7 percent last year, the first growth in a decade, but the IMF said the economic recovery remains fragile.
Significant policy challenges need to be addressed without delay, it said. In the area of structural reforms, the business climate, particularly respect for property rights, needs to be strengthened. The global lender last month restored Zimbabwes voting rights after a seven-year suspension, but said the country would not be able to access formal loans until its multimillion dollar arrears were settled.
Post published in: Economy