Thursday, October 22, 2009

(TALKZIMBABWE) Biti loses 'war' on IMF funds to Gono

Biti loses 'war' on IMF funds to Gono
Thu, 22 Oct 2009 08:53:00 +0000

FINANCE Minister Tendai Biti has lost the "war" over the allocation of the US$400 million Special Drawing Rights availed to Zimbabwe by the International Monetary Fund in August. The inclusive Government has agreed on how to use the 400-million dollar grant, after months of feuding about its allocation.

Minister Biti had sought to withold allocation of the grant until the next budget in November. Reserve Bank of Zimbabwe Governor Dr. Gideon Gono had sought immediate allocation to needy sectors in the economy; such as mining, manufacturing and public utilities

"Last week cabinet did approve the distribution of this money, which will be used in the completion of public works programs," said Industry Minister Welshman Ncube.

"We agreed that 150-million dollars (100-million euros) should go to productive sectors such as mining and manufacturing," he added.

The decision was taken at a cabinet meeting on 13 October, before the Movement for Democratic Change (MDC-T) so-called "disengagement" from government business.

According to Ncube, part of the money would be used to complete the refurbishment of the Bulawayo airport and repair roads and state hospitals.

The decision by Cabinet is a triumph for the RBZ Governor who had recommended that the IMF SDR be used in mining and manufacturing industries, as well as public entities.

“Sectors we have recommended to benefit from the funds are agriculture and firms that produce fertilisers and chemicals locally; the manufacturing sector, mining sector including SMEs, tourism, infrastructure, mining exploration, and power generation sector," said the Governor back in September.

“No consumption spending or importation of luxuries, groceries etc. That we are saying no to. But the ultimate decision lies with the Ministry of Finance, Cabinet and stakeholders. My role is advisory.”

Biti had preferred that the allocations be used for shoring up Zimbabwe’s reserves.

Labels: , , , ,


Post a Comment

Subscribe to Post Comments [Atom]

<< Home