Business / Economy
Zimbabwe's IMF repayment not automatic access to more funds
26 Oct 2016 at 16:40hrs | Views
Zimbabwe's surprise $107,9 million payment to the International Monetary Fund (IMF) last week has unlocked more funds but with conditions.
Currently the cash strapped government can access $91,2 million.
" . . the amount held in escrow is indeed SDR 66,4 million ($91,2m), which became available to Zimbabwe after settling the overdue obligations," IMF resident representative to Zimbabwe, Christian Beddies is quoted saying.
The escrow account is an account where money that is due to countries that owe the IMF is held, until they settle their obligation as Zimbabwe has done.
However, last Friday IMF warned that clearance of arrears did not mean Zimbabwe could now receive financial help.
"Following the clearance of arrears, and in line with IMF's policies and procedures, the executive board will consider a formal proposal to lift the remaining remedial measures imposed on Zimbabwe because of the arrears.
"The lifting of the remedial measures does not automatically provide Zimbabwe with access to IMF financing.
"Access to IMF resources would first require the establishment of a credible plan to clear arrears with other international financial institutions (IFIs) and with bilateral creditors, in line with applicable fund policies.
"It would also require implementing a strong reform agenda to restore economic stability and foster sustained and inclusive growth" it said in a statement.
Zimbabwe still has to settle the $1,1 billion World Bank arrears as well as the $601 million it owes the African Development Bank (AfDB).
Currently the cash strapped government can access $91,2 million.
" . . the amount held in escrow is indeed SDR 66,4 million ($91,2m), which became available to Zimbabwe after settling the overdue obligations," IMF resident representative to Zimbabwe, Christian Beddies is quoted saying.
The escrow account is an account where money that is due to countries that owe the IMF is held, until they settle their obligation as Zimbabwe has done.
However, last Friday IMF warned that clearance of arrears did not mean Zimbabwe could now receive financial help.
"The lifting of the remedial measures does not automatically provide Zimbabwe with access to IMF financing.
"Access to IMF resources would first require the establishment of a credible plan to clear arrears with other international financial institutions (IFIs) and with bilateral creditors, in line with applicable fund policies.
"It would also require implementing a strong reform agenda to restore economic stability and foster sustained and inclusive growth" it said in a statement.
Zimbabwe still has to settle the $1,1 billion World Bank arrears as well as the $601 million it owes the African Development Bank (AfDB).
Source - Byo24News
