IMF responds to Zimbabwe’s request for funding.
The International Monetary Fund (IMF) spoke about Zimbabwe’s financial standing with global lending financial institutions during a presentation on the IMF’s assistance to African countries to help them respond to the covid-19 pandemic. Responding to a question raised on whether Zimbabwe was eligible to receive funding as it claimed to have cleared its debt with the IMF, the IMF officials responded, “Unfortunately Zimbabwe continues to have areas with the African Development bank and The World Bank which is a constraint to our ability to lend to the country.”
He further went on to say, “This hasn’t stopped us from engaging in policy dialogue.”
The response concluded Zimbabwe in eligible to get funding from the IMF, or the World Bank before it clears its arrear.
Mthuli Ncube’s Letter
The Minister of Finance in Zimbabwe Mthuli Ncube wrote a letter on the 2nd of April 2020 begging the international lending institutions IMF, World Bank, Paris Club and the African Development bank to either cancel or restructure Zimbabwe’s loan balances to enable it to get funding to respond to the covid-19 pandemic. The Minister admitted Zimbabwe would collapse if an urgent financing arrangement would not be agreed. He went on to discuss political, economic and social reforms that the country was working on inorder to end its international isolation.
The IMF approved funding totalling 14 billion Unites States dollars to 40 nations, 25 of which are emerging economies where Zimbabwe falls under. Most notably, the IMF approved USD 3,4 billion to Nigeria to respond to the covid-19 crisis.
The ruling Zanu PF government’s mantra was ‘Zimbabwe is open for business’ when they got re-elected in a disputed election but the steam has since died down as re-engagement efforts have been fruitless without the backing of the opposition MDC Alliance.
Watch the IMF video:
The COVID-19 pandemic is an unprecedented health and economic crisis in sub-Saharan Africa. The region’s economy is set to shrink by a record 1.6% this year—the lowest since 1970—with real per capita income falling by 3.9%.Today, the IMF presented its outlook for the region and outlined the priorities for stakeholders. The full report is available to download here: http://ow.ly/BcCS50zcPBs #IMFAfrica
Posted by International Monetary Fund on Wednesday, 15 April 2020