Maravi

IMF ready for talks with Zim leaders

IMF ready for talks with Zim leaders
By Kingsley Kaswende in Harare
Wednesday September 17, 2008 [04:00]

THE International Monetary Fund (IMF) has said it is ready to talk with the leadership of the new Zimbabwean government in a bid to resume financial aid to the country. IMF head Dominique Strauss-Kahn hailed the power-sharing deal arrived at in Zimbabwe, saying the IMF stood ready to hold talks with the country's leaders.

"Today's power-sharing deal in Zimbabwe paves the way for a new government that can begin to address the economic crisis," Strauss-Kahn noted in a statement released on Monday evening.

"We stand ready to discuss with the new authorities their policies to stabilise the economy, improve social conditions, and reduce poverty," Strauss-Kahn stated.
The IMF suspended its dealings with Zimbabwe after a fact-finding visit to Harare in December 2006, when Zimbabwe was almost expelled from the organisation for defaulting its loans.

The world lender has in the past criticised Zimbabwe's economic policies and expressed concerns about the Reserve Bank of Zimbabwe, which it accused of over-printing banknotes in order to finance government expenditure. The IMF argued that this practice was orchestrating high levels of inflation, now estimated at over 20 million per cent. Zimbabwe has also been faced with chronic shortages of foreign currency and food, skyrocketing unemployment levels and widespread hunger.

Strauss-Kahn urged Zimbabwean leaders to commit themselves to the implementation of the deal.

"I encourage the government to take steps to show clear commitment to a new policy direction and to seek the support of the international community," he said.
Organised business in South Africa have also pledged to help Zimbabwe rebuild its economy following the signing of a power-sharing deal on Monday.

"As the voice of business in South Africa, with members holding business interests in Zimbabwe, BUSA (Business Unity South Africa) stands ready to work and support all Zimbabwean parties in the restoration of economic stability and growth," read a statement by BUSA.

BUSA congratulated the leaders of the three principal players in Zimbabwe and pledged maximum support.

"The road to rebuilding the economy will be a long and difficult one, but it is a beginning," the statement read.

Under Monday's deal, in which the Zimbabwean leaders pledged to work together to rebuild the nation, President Mugabe will remain head of state while Morgan Tsvangirai, who leads the Movement for Democratic Change (MDC), will serve as Prime Minister.
In the new shared government, the executive authority of the government shall vest in, and be shared among the President, the Prime Minister and the cabinet.

The President will chair cabinet, exercise executive authority, chair the National Security Council, formally appoint the two Vice Presidents and, pursuant to the agreement, appoint the Prime Minister pending the enactment of the Constitution of Zimbabwe Amendment no. 19 as agreed by the parties.

President Mugabe will also formally appoint deputy prime ministers, ministers and deputy ministers.

Prime Minister Tsvangirai will chair the Council of Ministers and will be the deputy chairperson of cabinet.

He shall oversee the formulation of government policies by the cabinet, ensure that the policies so formulated are implemented by the entirety of government and ensure that ministers develop appropriate implementation plans to give effect to the policies decided by cabinet:

He shall have the responsibility to discharge the functions of the Leader of Government Business in Parliament and shall be a member of the National Security Council.
The Council of Ministers will, among other things, ensure that the Prime Minister properly discharges his responsibility to oversee the implementation of the work of government.

It will also assess the implementation of Cabinet decisions and assist the Prime Minister to attend to matters of coordination in the government.
Under the new government, there shall be two deputy prime ministers, each from the two MDC factions.

There shall be 31 ministers, with 15 nominated by ZANU PF, 13 by Tsvangirai's MDC and three Mutambara's MDC.

Of the 31 ministers, three, one from each party, may be appointed from outside the members of parliament. The three ministers so appointed shall become members of the House of Assembly and shall have the right to sit, speak and debate in parliament, but shall not be entitled to vote.

There shall be fifteen deputy ministers, with eight nominated by ZANU PF, six by Tsvangirai's MDC and one by Mutambara's MDC.

Nine additional senatorial posts will be created to be filled by an equal number of people from the three parties.

This government is expected to be announced this week.

Labels: IMF, ZIMBABWE

posted by MrK @ 3:25 AM