Mugabe endangers IMF talks

President Robert Mugabe's announcement to reverse Treasury's recent decision to suspend civil servant's bonuses could jeopardise Finance Minister Patrick Chinamasa's ongoing reengagement efforts with the IMF to obtain fresh funding to kick-start the free failing economy.

According to IMF statement No.15/101, Zimbabwe had agreed to cut its recurrent expenditure which includes the salaries and wage bill hence Chinamasa's announcement last week to suspend the bonus payments was in line with that agreement.

The commitment to eliminate the primary fiscal deficit Zimbabwe intention to further raise it capacity to repay (loan arrears).

IMF said the top priority is to move resources from a too high wage bill to much needed capital and social spending.