Business / Economy
IMF programme not ESAP says Gono
14 Jun 2013 at 16:58hrs | Views
The Reserve Bank of Zimbabwe Governor, Dr Gideon Gono says the programme between government and the International Monetary Fund (IMF) is not a form of structural adjustment programme as claimed by some circles.
The comments by the central bank governor come amid reports in the business circles that the IMF staff monitoring programme can be equated to the Economic Structural Adjustment Programme (ESAP) that was largely viewed as having caused the country's economic difficulties in the early 1990s.
Dr Gono dismissed the claims, arguing the programme is home grown and will increase capacity utilisation to 100 percent as well as create employment and improve the country's infrastructure.
"This is not a typical ESAP type of programme that's why it took long as there were wide consultations from the cabinet level. It is of our liking despite not taking away the generic factors, but it's a Zimbabwean project which will play a critical role towards increasing exports," said Dr Gono.
Government and the IMF signed a letter of intent last week, under a staff monitoring programme as a first step towards the re-engagement exercise that will culminate in debt forgiveness.
Zimbabwe is reeling from a huge debt hovering above US$10 billion owed to various multi-lateral institutions.
The comments by the central bank governor come amid reports in the business circles that the IMF staff monitoring programme can be equated to the Economic Structural Adjustment Programme (ESAP) that was largely viewed as having caused the country's economic difficulties in the early 1990s.
Dr Gono dismissed the claims, arguing the programme is home grown and will increase capacity utilisation to 100 percent as well as create employment and improve the country's infrastructure.
"This is not a typical ESAP type of programme that's why it took long as there were wide consultations from the cabinet level. It is of our liking despite not taking away the generic factors, but it's a Zimbabwean project which will play a critical role towards increasing exports," said Dr Gono.
Government and the IMF signed a letter of intent last week, under a staff monitoring programme as a first step towards the re-engagement exercise that will culminate in debt forgiveness.
Zimbabwe is reeling from a huge debt hovering above US$10 billion owed to various multi-lateral institutions.
Source - zbc
