Maravi

(NEWZIMBAWE) US backs lifting of IMF suspension

US backs lifting of IMF suspension
by
20/01/2010 00:00:00

THE United States has promised to back Zimbabwe’s bid to have its voting rights at the International Monetary Fund (IMF) restored during the multilateral lending institution’s next board meeting.

Zimbabwe’s voting and related rights were suspended in 2003 after the country failed to clear its arrears and the organisation determined it was not getting any cooperation in terms of policy implementation. The IMF says suspension of voting rights is “one in a series of escalating remedial measures (applied) to members that fail to meet their obligations”.

The suspension meant that Zimbabwe could no longer appoint a Governor to the IMF, participate in the election of an Executive Director for its Board, or cast its vote in decisions on IMF policy or country matters.

However, US Ambassador to Zimbabwe, Charles Ray, told The Herald in Harare that his country would support a motion to have the rights restored.

"We would want to assure Zimbabwe that once the issue of restoring Zimbabwe’s voting rights in the IMF is put forward for debate at the next IMF sitting, America will fully support the motion,” he said.

He was speaking after meeting Deputy Prime Minister, Thokozani Khupe who said the country’s fledgling economic recovery needed the support of the international community to be sustained.

"The inclusive Government has covered enough ground and we feel if financial restrictions are removed Zimbabwe will be able to retain its former status.

"As a country, we are making efforts to economically empower our people so that they do not depend much on donor funds but use their vast natural resources to develop themselves and the country," Khupe said.

The Ambassador refused to be drawn on whether the US would consider repealing the Zimbabwe Democracy and Economic Recovery Act (ZDERA) of 2001.

The act directs the US representatives to organisations such as the IMF to oppose any loans or debt relief to the government of Zimbabwe.

The restriction would only be lifted once the US was satisfied Zimbabwe had met a series of conditions relating to the “restoration of the rule of law”, the holding of “free and fair” elections and demonstrated commitment to “equitable, legal and transparent” land reform.

Labels: CHARLES RAY, IMF, SANCTIONS, USA, ZDERA, ZIMBABWE

posted by MrK @ 6:11 AM