Zimbabwe to cut its public sector wage bill sharply

The IMF noted that while progress had been made in the financial sector, risks remained and urged the government to continue strong proactive supervision.

Improving the business environment, in particular the implementation of the indigenisation policy was key to attracting foreign direct investment.

Chinamasa said government was in the process of crafting a Country Financing Strategy Paper with the hope of convincing the IMF to synchronize a new country financing programme with payment of arrears.

Zimbabwe, which owes $1. 8 billion in arrears to the World Bank, IMF and AfDB, has not been able to access much needed fresh financing from the fund and last October put across an arrears clearance strategy which is considered an important step towards normalizing relations with international financial community.

Fanizza said the resolution of Zimbabwe’s external arrears with international financial institutions (IFIs) would be a key step to normalising relations and a possible IMF financial arrangement.

“We are encouraged that the authorities plan to clear the outstanding arrears with International Financial Institutions as outlined at the Lima meetings. The successful resolution of Zimbabwe’s external payment arrears will be an important step toward normalising relations with the international finance community and will allow the country to eventually seek A Fund financial arrangement,” Fanizza said.

“It will also send strong signals to the international community, reduce perceived country risk premium and unlock affordable financing for government and the private sector.”- The Source

See also:

Zimbabwe’s risk profile improves after arrears clearance plan approval

Zimbabwe is not poor- IMF

The IMF is no Father Christmas

IMF said Gono was the worst central banker in the world

IMF and World Bank killed agriculture in Zimbabwe- study

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