Business / Economy
IMF admits its failure to restore Zim funding is delaying recovery
02 Mar 2013 at 15:05hrs | Views
The International Monetary Fund (IMF) has admitted that its failure to restore funding to Zimbabwe is delaying recovery of productive sectors.
The IMF team which was in the country to assess economic performance said in a statement that failure to provide credit lines to Zimbabwe has hindered efforts by government and the private sector to increase business confidence.
The IMF, which relaxed restrictions on technical assistance to Zimbabwe in December last year, has also approved government's debt repayment strategy to multilateral lending institutions.
Confederation of Zimbabwe Industries past president, Joseph Kanyekanye says while the IMF is optimistic of economic growth, government should mobilise capital from internal resources.
"What is now being needed is a workable debt repayment system for the benefit of Zimbabwe," said Mr Kanyekanye.
Zimbabwe has failed to access loans from the IMF as the Bretton Woods institution insists government should repay outstanding arrears of more than US$150 million.
However, analysts say the country's economic revival can never be hinged on loans from the IMF as it politicises funding when it comes to third world countries.
The IMF team which was in the country to assess economic performance said in a statement that failure to provide credit lines to Zimbabwe has hindered efforts by government and the private sector to increase business confidence.
The IMF, which relaxed restrictions on technical assistance to Zimbabwe in December last year, has also approved government's debt repayment strategy to multilateral lending institutions.
"What is now being needed is a workable debt repayment system for the benefit of Zimbabwe," said Mr Kanyekanye.
Zimbabwe has failed to access loans from the IMF as the Bretton Woods institution insists government should repay outstanding arrears of more than US$150 million.
However, analysts say the country's economic revival can never be hinged on loans from the IMF as it politicises funding when it comes to third world countries.
Source - zbc
