Maravi

(TALKZIMBABWE) IMF restores Zimbabwe's voting rights

IMF restores Zimbabwe's voting rights
Itayi Garande
Sat, 20 Feb 2010 19:19:00 +0000

THE Executive Board of the International Monetary Fund (IMF) as agreed to restore Zimbabwe's voting rights after a seven-year suspension and has started taking steps towards unfreezing access to the General Resource Account.

"The ...IMF decided today to restore Zimbabwe’s voting and related rights, and its eligibility to use resources from the IMF’s General Resources Account (GRA)," read a statement emailed to the Zimbabwe Guardian.

"Notwithstanding the restoration of the eligibility to use GRA resources, Zimbabwe will not be able to use resources from the GRA or the Poverty Reduction and Growth Trust (PRGT) until it fully settles its arrears to the PRGT (SDR 89.4 million or about $140 million)," the IMF added.

The action followed a request from Zimbabwe's government, the IMF said. But the fund said the country was still ineligible for loans until it had paid off a combined 1.3 billion dollars to the IMF, the World Bank and the African Development Bank.

"Access to IMF lending resources is also subject to IMF policies on the use of such resources, including a track record of sound policies and the resolution of arrears to official creditors, which would require donor support," the Fund added

Zimbabwe can now take part in IMF decision-making, but said other issues will be addressed over time.

"Following today's decision, any remaining issues on further normalization of relations will be addressed over time," said the 186-nation fund.

The IMF noted that as long as Zimbabwe remained in arrears, it would continue the suspension of technical assistance, except in "targeted" areas.

The move recognises the country's efforts to repair its economy and improve relations with donors.

The IMF declared Zimbabwe ineligible to access its resources in 2001 and suspended the country's voting rights in 2003 citing overdue financial obligations.

In May last year, the IMF approved technical assistance in certain areas, citing a significant improvement in Zimbabwe's cooperation on economic policies.

The move comes just days after the European Union renewed sanctions against the country for another 12 months, citing lack of progress by the new inclusive Government.

Labels: IMF, ZIMBABWE

posted by MrK @ 6:37 PM