IMF to monitor Zim debt plan for another 6 months

The International Monetary Fund (IMF) will monitor Zimbabwe’s debt management

By Nomalanga Moyo
SW Radio Africa
13 January 2014

The International Monetary Fund (IMF) will monitor Zimbabwe’s debt management scheme for another six months at the request of the ZANU PF government.

The scheme was scheduled to run from April to December last year, but has been extended to give ZANU PF time to implement the delayed budget and its Zim Asset economic programme, as SW Radio Africa reported last week.

“At the authorities’ request, IMF Management has approved a six-month extension of Zimbabwe’s Staff Monitored Program to allow time for the national authorities to strengthen their policies and deliver on outstanding commitments under the program,” the global lender said in a statement.

IMF monitors are expected to return to Zimbabwe in March to review the government’s performance and “during the visit, the targets for a third review with an assessment date end-June 2014 will be set,” the Fund said.

Following an earlier visit in November, the delegation raised concerns about Zimbabwe’s commitment to the debt programme, after it emerged that ZANU PF had defied the agreement and hired an extra 10,000 security personnel.

ZANU PF’s secretary for administration Didymus Mutasa however denied the allegations and challenged the IMF to produce evidence.

Under the staff monitored programme, Zimbabwe is required to implement sound economic policies that promote sustainable spending, protect investment, increase diamond revenue transparency, reduce financial sector vulnerabilities, and to restructure the central bank.

Although the scheme is voluntary and does not necessarily mean the IMF backs the country’s economic programme, it nevertheless represents a key step towards Zimbabwe’s re-engagement with international lenders.

The World Bank and the IMF suspended aid to Zimbabwe in 1999 over differences with the ZANU PF regime’s unsustainable economic policies. Zimbabwe currently owes the IMF $124 million. It fell into arrears in 2001, and was expelled from the Fund in 2005.

The World Bank, which is owed $1 billion, says Zimbabwe should devise a comprehensive arrears clearance plan with international lenders to qualify for fresh loans. The institution’s programmes in Zimbabwe are limited to humanitarian aid.



17 Responsesto “IMF to monitor Zim debt plan for another 6 months”

  1. Chimbwido Warvet says:

    Oh my God, the ZANU PF led government leant nothing from the disaster of the so-called ‘Structural Adjustment Programme’ that nearly paralysed the Zimbabwean economy in the recent past. Accepting and applying the once disastrous economic model from the IMF and World Bank to Zimbabwe is like throwing meat to lions, wolves and hyenas. I would rather ask the people of this country to sacrifice the hardship of today for a better tomorrow than borrowing money from these crooks.

    • The Black Aristocrat says:

      Oh the irony !

      Crooks? The Zanu PF criminal billionaires that are masquerading as government ministers of what is now the second poorest country in the world in GDP per capita terms as a result of their looting, appalling mis-governance, and disastrous economic mismanagement are in a league of their own when it coming to looting on a industrial scale, with daylight second.

      Also, why is it that dirt poor starving Zimbabweans still have to pay expensive medical bills and their hospitals don’t even have drinking water, and yet the ZANU PF crooks sinisterly dish out millions to that clueless gheto-rat Julius Malema, in an attempt to undermine a democratically elected sovereign government?

      Answers on a postcard to Robert Mugabe c/o The Grange, the most expensive private hospital in Singapore – paid for from hard working Zimbabweans taxes under Zanu PF’s Apartheid Health System – private hospitals abroad for the Zanu elite, and a broken, cash and drug starved disaster of a health system at home for their masters the Zimbabwean people!

      • Chimbwido Warvet says:

        This sounds very familiar mate. Right in my backyard, some of the major financial institutions of the country have been skimmed and embezzled of trillions of dollars by bankers that has brought human suffering across the globe. But the irony of it all is that none of the bankers has been found guilty of impropriety, corruption, thievery or embezzlement of investors’ funds. If anything, these financial institutions have been bailed out by us, the taxpayer. While the working class has been asked to tighten their belts, senior bankers have awarded themselves huge salaries and bonuses which are not related to performance but to failure after failure. As a consequence of their diabolic acts, the world is in economic doldrums or recession while senior bankers are laughing all the way to the bank.

        The IMF and World Bank have experimented with Zimbabwe by introducing an economic model, the so-called ‘Structural Adjustment Programme’ that proved highly disastrous to the country. In any case, non of the economic models introduced to the so-called Third World Countries by the IMF and World Bank have not been successful at all. Countries that accepted their economic prescription are now in crippling debts. This information is in the public domain. You can, therefore, do your own research if you are in doubt.

        As a Zimbabwean at heart, I have every right to express my concerns.

        • The Black Aristocrat says:

          You’re confusing the behaviour of Western bankers with Zimbabwean ‘politicians’!

          In Zimbabwe, it is the Zanu PF political and military elite that are the looters and crooks, in the West it has been some of the bankers not the politicians.

          There is a very big difference!

          Politicians in Britain have served sentences for expenses fraud !

          How many shamelessly wealthy senior Zanu PF politicians could demonstrate they have acquired their assets legally rather than by corruption and looting from the state ?

          Laughably, the late General Majuru’s estate was estimated to be worth $9 billion, in country with an annual GDP of $4.5 billion.

          • Chimbwido Warvet says:

            Son, Zimbabwe is a lot wealthier than the Europen Union countries put together. In terms of its natural resources and human capital. The rise of Zimbabwe and other countries as the DRC, Angola, Nigeria and Soth Africa is a threat to the European Union and the Americas. It is these restrictive and draconian policies that have been deliberately imposed on us by the IMF and World Bank to make us fail and in the process, remain subservient and perpetual slaves of western corporations and Wall Street. No genuine efforts can be made to foster economic growth and prosperity by these external actors who see Zimbabwe as their cash cow.

          • The Black Aristocrat says:

            Lol! I’d lay off the crack pipe if i were you !

            You clearly have not got a clue what you are talking about!

          • Chimbwido Warvet says:

            Well, I know what I am talking about. We do not need the IMF economic model in Zimbabwe at all. We have tried it before and it failed. What more evidence do you need. Zimbabwean people are living examples that were sacrificed by the IMF to benefit foreigners at the expense of my people.
            It is outdated, obsolete and has outlived the purpose it was created to serve after the Second World War. It now only serving the interests of the Wall Street and foreign corporations. Get this and remember it at all times, mate. You do not lose a thing by accepting only the truth.

          • The Black Aristocrat says:

            As you know very well the economic problems of Zimbabwe and much of Africa are directly the result of appalling mis-governance and endemic corruption, by President for life Dictators and their henchmen masquerading as democratically elected politicians !

          • Chimbwido Warvet says:

            I hope you are not as dumb and deaf as you write and look, mate. Well, It becomes corruption for the so-called African dictators although you are aware the majority of such so-called dictators are propped up by the Wall Street, the Swiss bankers, the US State Department and many others in the western world. We all know that the US State Department propped up the late President Mobuto for decades for reasons that are in the public domain. The US is propping up Museveni of Uganda who is known as one of the dictators on the African continent. I has set up a military base in Uganda for reasons that are very clear to some of us except you. I can go on and on but the bottom line is corruption does not happen in vacuum. It takes two to tangle, a giver of our national resources who are the so-called African dictators and the receiver of our national resources in this case the Wall Street bankers, the Swiss bankers and a host of other corrupt people in the Western World you do not want to mention. You can not fool anybody, mate. There are people who are more knowledgeable than you mate

          • The Black Aristocrat says:

            ‘There are people who are more knowledgeable than you’

            Of that there is no doubt, but you are certainly not one of them !

  2. Yepec says:

    Zanu PF members looted dry the War Veterans Fund during Hunzwi’s time. Phillip Chiyangwa took the Harare City stands that had been reserved for its social services, only Zanu PF members were allocated the grabbed White farms, Ignatius Chombo freely allocated himself the Municipality stands in all the Cities and Towns of Zimbabwe, Obert Mpofu and the Security Forces looted then smuggled the diamonds at Marange and, to crown it all, Robert Mugabe is taking the Caledonia Farm, in addition, to the 39 farms he has, already, allocated himself. This is the Zanu way of running a government..

    Given the above facts, what does it practically mean when fake, Chimbwido Warvet says that “I would rather ask the people of this country to sacrifice the hardship of today for a better tomorrow ….”?

    As for the IMF monitoring the Zimbabwe debt plan for another six months, the organisation believes that Robert Mugabe has an economic programme plus he is willing and the country has the capacity to pay the debt arrears. Given the above circumstances, the IMF “ichazvionera pamhuno sefodya or semunhu aputa fodya”.

  3. Chimbwido Warvet says:

    The Black Aristocrat

    The IMF and World Bank were created some 70 years ago, soon after the end of the Second World War. These institutions were primarily created and geared to help Europe’s economic reconstruction and development. Europe that was almost bankrupt had suffered the Great Depression of 1930 followed by the war of 1939 to 1945. It needed large sums of funds it did not have to redevelop its economy. The architects of these institutions were the United States and the United Kingdom. At that time only two African states were independent, namely Liberia and Ethiopia and the rest were still under colonial domination and control. It is these two African countries that represented the African continent when the IMF and World Bank came into existence. As I compile this article, it is still two countries that have executive directors that represent the 54 African states that are now sovereign and independent. All European countries have a representative each who represents their interests at the IMF. The imbalance and dominance of the African continent by Europe and the Americas are quite clear. In any case,
    these financial institutions were not created to serve the interests of the African
    continent. And they have never served us and will not in the future and here is
    my argument.

    Over the last 70 years there have been a proliferation of many economic models that have been introduced by the IMF to the so-called Third World countries and Zimbabwe in particular. As has become familiar to many of us, the economic models have been introduced to us with many restrictions and conditionalities which I summarize as follows:-

    (a) Cut the Zimbabwe government’s size.

    (b) Removal of subsidies to Zimbabwean farmers and encouraging the country to import goods and services from other countries than assisting our farmers. This was stripping the ability of our farmers to grow food that would meet the needs of
    our people. It would be the multi-national corporations that will benefit from
    the subsidies. This is criminal and corruption of the highest order. Land grabs has been going on in other countries by the corporations as farmers will be leaving their farms when they fail to produce on their farms due to lack of subsidies in bad years.

    (c) The IMF wants the government to get out of the way and let market forces play a major role in the development and growth of the Zimbabwean economy. According to the IMF, this would attract large corporations from abroad to come in the country to develop its economy for the betterment of the Zimbabwean people.
    This was obviously not true as the intention was for the major multinational
    corporations to come in the country in order to dominate the Zimbabwean market at the expense of our industries. This would help the external actors who would come in and do as they please without restrictions

    (d) The government has been asked by the IMF to deregulate its economy and essentially to restrict the inflows and outflows of capital in the country.

    (e)The Zimbabwean government was asked to deregulate the economy in order to allow foreign direct investment to ensure its economic prosperity. There was an assumption that if there was a deregulation of the economy, the economy would grow by leaps and bounds and consequently bring about an improvement in the welfare of the Zimbabwean people. This proved to be false.

    It clear that the above model which is 70 years old is outdated and does not met the needs and aspirations if the Zimbabwean people. It has only helped the external actors, mainly the Wall Street bankers and western corporations that have huge investments in the exploitation and extractions of minerals in Zimbabwe they are just plundering and looting for almost nothing. I therefore do not think the IMF model for economic development is a panacea to our economic
    problems. We do not need the IMF or the World Bank to assist Zimbabwe. We could consider a different economic model for instance the Venezuelan economic
    model that was developed during the late Chavez era which is less restrictive and
    other oil producing countries that are helping countries like Zimbabwe that are in dire need of financial assistance. Alternatively, we can go it alone without seeking help from anyone.

    A new economic model that is tailored to meet the needs of Zimbabwe and other so-called Third World countries is needed and the time is now. The IMF economic model is now obsolete and as such has not benefited the country at all. If anything, it has facilitated the plunder of our natural and human resources by external actors at the expense of the Zimbabwean people. Zimbabweans should not embrace this stupid model but throw it through it right in the dustbin of history.

  4. Chimbwido Warvet says:

    Kunge ndirikutaura nezvitsiga, madongi kana kuti madununu asingagone kunyora zvinemusoro. Mazidofo

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