Business / Economy
IMF team expected in Zimbabwe next month
13 Apr 2012 at 04:32hrs | Views
An International Monetary Fund (IMF) delegation is expected in Zimbabwe next month to assess economic performance but analysts are questioning the relevance of the institution in providing funding assistance to third world countries.
The IMF team, which will be coming to Zimbabwe next month, is expected to meet government ministries, central bank authorities as well as captains of industry and commerce.
The visit is in line with Article 4 of the IMF mandate which requires the institution to conduct consultations aimed at assessing economic progress and solutions to challenges affecting productive sectors.
However, a business analyst, Mr Tendai Munyoro says the IMF should instead come up with rescue financial packages apart from focusing on fiscal and monetary advisory policies.
"We are now taking this team with a pinch of salt. Why are they coming yet failing to provide necessary funds?" asked Mr Munyoro.
Another economic commentator, Mr Trevor Jakachira believes that while the IMF is trying to mend economic relations with Zimbabwe, its failure to come up with a favourable debt repayment strategy to pave way for the resumption of financial aid is a clear indication of its lack of commitment towards helping third world countries.
"We do not know their agenda, maybe they have something which they want from Zimbabwe, let's wait and see," said Mr Jakachira.
Zimbabwe, which owes international financiers about US$8 billion, is currently experiencing positive real gross domestic product rates, single digit inflation levels, a rebound in agriculture and mining sectors.
Observers have called for multilateral funding institutions such as the IMF to focus on mobilising offshore credit lines.
The IMF team, which will be coming to Zimbabwe next month, is expected to meet government ministries, central bank authorities as well as captains of industry and commerce.
The visit is in line with Article 4 of the IMF mandate which requires the institution to conduct consultations aimed at assessing economic progress and solutions to challenges affecting productive sectors.
However, a business analyst, Mr Tendai Munyoro says the IMF should instead come up with rescue financial packages apart from focusing on fiscal and monetary advisory policies.
"We are now taking this team with a pinch of salt. Why are they coming yet failing to provide necessary funds?" asked Mr Munyoro.
Another economic commentator, Mr Trevor Jakachira believes that while the IMF is trying to mend economic relations with Zimbabwe, its failure to come up with a favourable debt repayment strategy to pave way for the resumption of financial aid is a clear indication of its lack of commitment towards helping third world countries.
"We do not know their agenda, maybe they have something which they want from Zimbabwe, let's wait and see," said Mr Jakachira.
Zimbabwe, which owes international financiers about US$8 billion, is currently experiencing positive real gross domestic product rates, single digit inflation levels, a rebound in agriculture and mining sectors.
Observers have called for multilateral funding institutions such as the IMF to focus on mobilising offshore credit lines.
Source - zbc
