Debt clearance key to funding resumption: International Monetary Fund (IMF)

International Monetary Fund

The International Monetary Fund (IMF) plans to help the government with taxation reform policies under its technical assistance plan pending resolution of debt clearances owed by Zimbabwe to other multilateral financiers.

Zimbabwe’s clearance of debts to the International Monetary Fund (IMF) last year marked a shift to normalisation of times; however, the nation is still to get any meaningful funding from the global lender.

International Monetary Fund (IMF) resident representative Mr Christian Beddies says while the institution has restored technical help to the government through  tax reform policies, resumption of normal funding will be depend on the ability by Zimbabwe to clear outstanding debts owed to the World Bank, African Development Bank and other lenders.

“There is still a lot that needs to be done because as it stands we cannot just do that since there are other funds that needs to be repaid,” said Mr Beddies.

Zimbabwe has tabled a US$1.7 billion debt clearance plan to the World Bank and the African Development Bank which has however been approved.

The clearing of the arrears is expected to reduce the country’s risk and open fresh avenues for credit from external private banks.

IMF Meetings: Focal Point for the Global Economy

Christine Lagarde, managing director of the IMF (Associated Press)

The meetings of the International Monetary Fund (IMF) and the World Bank Group bring together an impressive group of leaders, executives and academics to discuss subjects of global concern with specific attention to the outlook of the economy, global financial stability and economic development. CIGI plays a significant role in those discussions.

At the 2016 annual meetings, CIGI and the Euro50 Group presented a timely panel on the euro zone after Brexit. At the spring meetings, CIGI and the Atlantic Council hosted a panel on Ukraine’s controversial banking reform tactics, which featured an introduction to the issue from Valeria Gontareva, governor of the National Bank of Ukraine. Senior Fellow Susan Schadler, who has more than three decades of experience at the IMF, participated as a panellist.

CIGI policy briefs, papers, videos and social media complemented the presence of fellows attending the meeting, resulting in some 250 articles in major media outlets including the Financial Times, The New York Times and The Wall Street Journal.

Source: ZBC

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