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An IMF staff-monitored programme is key for Zimbabwe, which is seeking to clinch a deal with its creditors for the clearance of D 19.2 billion in arrears, Ncube said at a meeting on the sidelines of the African Development Bank’s annual meetings held Wednesday in Nairobi, Kenya.
Zimbabwe sees the signing of an International Monetary Fund staff-monitored programme taking place in October, according to Finance Minister Mthuli Ncube. It will be the first time that the southern African nation will be placed under a programme overseen by the Washington-based lender in five years. A previous programme was abandoned in early 2020 after the Fund said that programme had gone “off-track” with policy implementation from the government mixed.
An IMF staff-monitored programme is key for Zimbabwe, which is seeking to clinch a deal with its creditors for the clearance of $19.2 billion in arrears, Ncube said at a meeting on the sidelines of the African Development Bank’s annual meetings held Wednesday in Nairobi, Kenya.
Since 1999, the country has been locked out of international capital markets after defaulting on its debts. It counts among its list of creditors the World Bank, Paris Club, European Investment Bank and the AfDB. A switch by the southern African nation to a new currency last month was recently described as an important step by the IMF in its first substantive comments. The ZiG, short for Zimbabwe Gold, is the nation’s sixth attempt to have a functioning local currency in 15 years. It is backed by 2.5 tons of gold and USD 100 million in foreign exchange held by the central bank.
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Meanwhile, the southern African nation plans compensation payouts to former White commercial farmers from July. The expected payouts will also include farmers who lost their land covered by so-called Bilateral Investment Protection and Promotion Agreements, which protect foreign investments from any policy shifts adopted by the host state.
