Maravi

(NEWZIMBABWE) UK backs Zim on IMF voting rights

UK backs Zim on IMF voting rights
by
05/02/2010 00:00:00

BRITAIN on Friday said it supported the restoration of Zimbabwe’s voting rights at the International Monetary Fund while noting the “recent improvement in the macroeconomic management” of Zimbabwe’s economy under Finance Minister Tendai Biti.

The IMF will decide later this month whether to restore Zimbabwe's voting rights in the Fund, Biti revealed on Wednesday.

And in a statement on Friday, the UK Treasury said: “The recent improvement in the macroeconomic management of Zimbabwe under Minister Biti has seen a stabilisation in inflation, the restoration of key services, an increase in tax revenue and growth in the Zimbabwean economy.

“The UK government also welcomes Zimbabwe’s re-engagement with the IMF over the last year, which has underpinned economic reform in Zimbabwe.

“Support for restoration of Zimbabwe’s IMF voting rights is recognition of this progress, and forms part of Zimbabwe’s re-engagement with international financial institutions.”

On Wednesday, Biti revealed he was lobbying Germany and the United States to support the restoration of Zimbabwe’s voting rights which were suspended by the IMF in 2003 over policy differences with President Robert Mugabe's government and payment arrears to the IMF.

Biti said the IMF blockade must be lifted in response to positive reforms implemented by the unity government formed last year by arch rivals President Mugabe, Prime Minister Morgan Tsvangirai and Deputy Prime Minister Arthur Mutambara.

Zimbabwe, which Biti said needs at least US$8 billion to rebuild its battered economy, is emerging from a decade of economic decline under Mugabe.

Since the creation of the unity government a year ago, Zimbabwe's economy is showing signs of recovery with gross domestic product growth at a better-than-expected 4.7 percent in 2009.

Samuel Itam, who represents a constituency of African countries at the IMF board, including Zimbabwe, said he was "cautiously optimistic" about Zimbabwe's request for restoration of its IMF voting rights

He said the Zimbabwean government had paid off some of its IMF arrears and was working out a plan to clear the rest.
According to the IMF, Zimbabwe settled some of its arrears in 2006. The government committed to reduce a further $140 million in arrears through token quarterly payments of about $100,000 to the Fund from May 2009. Since then, the authorities have made $300,000 in payments.



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"I am cautiously optimistic there will be sufficient support ...in recognition for the effort Zimbabwe has made to (meet) its obligations to the international organization," Itam told Reuters in Washington.

Restoration of Zimbabwe's voting rights would signal the international community's confidence in political and economic reforms of the unity government

Asked whether Zimbabwe could apply for IMF loans once its voting rights were restored, Itam said: "We will take that as it comes."

He said Zimbabwe had been cooperating with IMF staff on policies needed to fix its economy and in discussions on how best to deal with its debt obligations to the institution.

"Zimbabwe needs the support for whatever progress it has made for that progress to be intensified," Itam said.
The Fund has said that any access to IMF loans by Zimbabwe would require a "sustained track record of sound policies and donor support for the clearance of arrears to official creditors.”

Labels: IMF, NEOCOLONIALISM, TENDAI BITI

posted by MrK @ 4:11 PM