Zimbabwe welcomes IMF financial package

Zimbabwe has received a decisive economic boost from the International Monetary Fund (IMF) after the institution availed 961 million United States Dollars in a Special Drawing Rights allocation.

The Minister of Finance and Economic Development, Professor Mthuli Ncube and the Reserve Bank of Zimbabwe Governor, Dr John Mangudya revealed in a statement the funds were deposited in the central bank's account on Monday this week.

According to the statement, the funds are also expected to increase foreign exchange reserves, and support the local currency.

In light of the current stability trends, treasury and the central bank have also revealed the importance of the allocations in moving forward with policies to increase economic activities.

Beneficiaries of the IMF allocation include health, education and the vulnerable groups as well as support to export sectors.

Industry, agriculture, mining, infrastructure investment, roads and housing will also benefit from the Special Drawing Rights.

Treasury and the central bank have also thanked the IMF for the rescue package which is aimed at helping nations in sustaining economic activities.

According to the IMF, special drawing rights can easily be converted to hard currency anytime and increase confidence in the ability of a nation to meet its future obligations.

This comes after IMF Managing Director, Kristalina Geiorgieva said the funds are being disbursed to all IMF member countries under a new 650 billion US dollar bailout for the global economy ravaged by COVID-19.