IMF voting rights restored

imfEDITOR - The International Monetary Fund (IMF) Executive Board has agreed to restore Zimbabwes voting rights after a ......

seven-year suspension and has agreed that if Zimbabwe settles its arrears to the Poverty Reduction and Growth Trust, the country will be permitted access to the IMFs General Resource Account.

In other words, the arrangements permit Zimbabwe to apply for new IMF loan facilities, but IMF regulations will not permit it to actually release loan funding until Zimbabwe qualifies for the assistance by settling its debts.

The outstanding amount owed to the IMF is about US$136 million, but more precisely, it is 89,4 million Special Drawing Rights. The exchange rate at the end of last week was SDR1=US$1,52464. However, the IMF has also reminded Zimbabwe of two critical issues:

Firstly, the countrys eligibility for new loans will not be fully restored until it has paid off a total of US$1,3 billion, the combined debts to the IMF, the World Bank and the African Development Bank.

And secondly, access to IMF resources is also subject to IMF policies on the use of such resources and to the country achieving a track record of sound policies. In this regard, the IMF and other organisations are keen to see evidence that Zimbabwe will accept policy changes that will help restore the countrys ability to earn foreign exchange.

Post published in: Africa News

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