(STICKY) (NEWZIMBABWE, REUTERS) IMF can help clear debt pile: Biti
COMMENT - Of course Tendai Biti is well aware of the existence of economic sanctions, including from ZDERA, which the MDC itself helped to draw up for maximum damage to the Zimbabwean economy and the landreform program. The MDC and Rhodesian Front knew very well that the only reason 'white farmers' did so well is because they received massive financial aid from the Rhodesian state, including multi-decade long mortgages - financed with Zimbabwean diamonds and labour (tobacco). It was this financial aid to the new farmers that ZDERA's sanctions targeted by destroying the national currency. Here on SW Radio Africa, Tendai Biti is caught admitting that while ZDERA is in place, it is 'very difficult for us to 'move' when ZDERA is there'. (YOUTUBE - MDC Finally Accepts Effects Of Sanctions - from 4:40 onwards)IMF can help clear debt pile: Biti
31/10/2012 00:00:00
by Reuters
EASING of IMF restrictions on Zimbabwe should help it to clear its mountain of defaulted debt and pave the way for foreign investment, Finance Minister Tendai Biti said on Wednesday.
The International Monetary Fund on Tuesday relaxed restrictions on technical assistance to Zimbabwe, a major step towards normalising relations with the destitute southern African country.
[If they let them sell their diamonds on the international market, they will no longer be 'destitute'. And when is Reuters going to admit that this destitution is a result of economic sanctions themselves? - MrK]
Zimbabwe's voting rights in the IMF were suspended in 2003 over arrears and policy differences with President Robert Mugabe's government.
[They opposed land reform, as well as indigenisation. And they have not forgiven them for telling them to take a hike with their ESAP structural adjustment program back in 1995. - MrK]
Voting rights were restored in 2010, allowing Zimbabwe to again participate in IMF decision-making.
"The decision basically lifts sanctions against engagement with Zimbabwe. It's a major step towards Zimbabwe's debt payment programme," Biti told Reuters.
['Sanctions against engagement with Zimbabwe'? What is the minister talking about? - MrK]
Biti saw the move as allowing Zimbabwe to work on its programme to reduce debt owed to global creditors, including the IMF and World Bank.
"An accelerated debt repayment programme was not possible as long as those sanctions remained in place," Biti said.
[And why is that? Oh, I remember, ZDERA Section 4C, clause (2):
the Secretary of the Treasury shall instruct the United States executive director to each international financial institution to oppose and vote against--
(1) any extension by the respective institution of any loan, credit, or guarantee to the Government of Zimbabwe; or
(2) any cancellation or reduction of indebtedness owed by the Government of Zimbabwe to the United States or any international financial institution.
The Zimbabwean government has not been allowed to reschedule it's debt since Jan. 1st 2002, when ZDERA 2001 came into force. - MrK]
While Zimbabwe is still not able to tap IMF funding, easing the restrictions moves it in that direction.
The IMF would want to see a record of sound policies by the unity government of President Mugabe and Prime Minister Morgan Tsvangirai before it agrees to a lending programme.
"They looked at our track record and understood what we're trying to do, as well as our growth prospects," Biti said.
A decade of decline culminated in Zimbabwe's economy being crushed about four years ago by hyperinflation running as high as 500 billion percent.
The unity government jettisoned the local currency in favour of the U.S. dollar and South African rand, ushering in economic stability and single-digit inflation.
Zimbabwe has proposed a repayment plan where it taps into its mineral wealth to pay debts while asking creditors to reduce some of the burden.
Its total external debt is huge, estimated at $10.7 billion, or 113.5 percent of GDP, at the end of 2011. More than half of it is in arrears.
The government recently projected growth of 8.9 percent in 2013.
There are concerns that elections required to be held next year as part of the deal to form the unity government could spark an economic crisis in a country with a history of deadly violence at the polls.
[Oh no, not deadly violence, with 1/30th of the deathtoll in the Kenyan elections, which of course went undisputed by the USA, UK and international observers. Reuters is not being truthful in it's reporting on Zimbabwe. - MrK]
COMMENTS
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Zhenharo Nepfuti
They say there were policy differences with Mugabe. What were these? Robert Mugabe told the IMF that with or without them, the land reform was irreversible. It was the clueless mBiti and accomplicies who said that land reform was a complete dissaster which they were going to surely reverse upon their assumption of power (albeit immaginery power). Thjey demmanded these punitive measures to facilitate their coming to power. But not the real truth is coming out. They failed to see the difference between street politics and the real bred and butter issues.. Its play and simmple that sanctions are there to hurt everyone and you feel it now. Shame on you guys. Lucky elections are just by the next coner now. Byeeeeee mBiti ande all.
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Zhenharo Nepfuti
So which is which Mr Superminister? Is the country under sanctions or they are for individuals.? Are you part of these individuals you used to tell us that they were the only ones affected? Its quite sad that despite all the degrees some of you people will only start to reason after making your speeches. You told everyone and everything that dared to listen that sanctions had no role in the economic quagmire that the country was going through. Only good management and sound resourse allocation was all that was needed, you told us. Now that you ran the show for 4yrs with all your good management, where then does the IMF come in?
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RG_M
Nhai batai benzi iri risati ratiwisira munataisireva! Have you checked the conditions nhai mBiti? Where were they in our time of need? 10 years without them why would we need them now we have managed without them all this time? What conditions are they setting this time? Have you checked mBit?
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mahoso
I hope Zanu PF and all MDC formations have learned something from this GNU.It is not clever to play politics with national issues.It's ordinary people who will suffer from these selfish and childish antics.
Labels: IMF, MDC TREASON, SANCTIONS, TENDAI BITI, ZDERA
posted by MrK @ 8:19 AM
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