(HERALD) IMF hails Zim reforms

IMF hails Zim reforms
Herald Reporter

THE inclusive Government has made strides in reviving the economy and now requires international support, the International Monetary Fund has said.

In statements published by the IMF website, on the IMF’s Sub-Saharan Africa Regional Economic Outlook, African Department director Ms Antoinette Sayeh on Saturday told a Press conference in Washington, DC, that the inclusive Government had made encouraging and positive steps that need to be supported.

"In Zimbabwe specifically, there are some encouraging developments, as you know, coming out of the agreement earlier this year to put in a coalition government," she said.

"It’s the context in which we think there is a window of opportunity in Zimbabwe that is worthy of support by the international community."

Government recently launched the Short-Term Emergency Recovery Programme to begin turning around the economy.

Ms Sayeh, however, said the Bretton Woods institution would be discussing on May 4 a report by a mission sent to Zimbabwe early this year.

"The actions taken recently . . . by the Government in Zimbabwe, are encouraging," Ms Sayeh said.

"We think hyperinflation has been stopped by the decision to use the rand and the US dollar, to recognise the use of those currencies because those currencies have become quite widespread in Zimbabwe.

"And the formal recognition and formal decision to dollarise, as we call it, to use external currency as domestic currency, has helped to put a stop to the quasi-fiscal deficit."

She said this has also resulted in a decline in prices and an improvement in the availability of goods in the country.

"So, in the very recent past developments in Zimbabwe have been broadly positive."

She said the IMF hopes to assist Zimbabwe through the institution’s policy advice.

"We’re hoping to do some small, technical assistance in the key areas of the Fund’s mandate, and we encourage others to do the same."

Ms Sayeh said the IMF would work with authorities to continue making progress on their efforts.

Finance Minister Tendai Biti was in Washington, DC, at the weekend for the IMF and World Bank spring meetings where he was lobbying for funding for STERP.

He was also expected to lobby for the reinstatement of the country’s voting rights suspended in 2003 by the IMF.

Zimbabwe needs about US$8,3 billion to revive its economy.