Zim needs US$50m to avert IMF expulsion

HARARE – Zimbabwe’s central bank chief said on Tuesday the country needed to clear outstanding arrears of US$50 million with the International Monetary Fund (IMF) to prevent possible ejection from the Fund.

President Robert Mugabe’s government had last week coughed up US$120 million to try and avert expulsion from the IMF. Gideon Gono, the Reserve Bank governor, told Reuters that Zimbabwe’s surprise payment was still inadequate to clear the outstanding arrears on its account.”There is still US$50 million that has to be paid and until that amount is paid, compulsory withdrawal proceedings can still be initiated and we are acutely aware of that,” Gono said.Asked whether Zimbabwe will pay the money before September 9 when the IMF executive board meets, Gono replied: “If we had the funds we would have paid, why would we pay US$120 million and not the rest of it.”Zimbabwe’s surprise last-minute payment left analysts wondering how the government had raised the money when the country was facing an acute shortage of foreign currency.The payment coincided with an IMF team which was in the country for a two-week stay to review Harare’s economic developments and prospects, and was preparing a report for the IMF Executive Board.The IMF mission said nothing on the subject of expulsion.Gono said although Zimbabwe was guilty, he hoped the Fund would take into consideration “the sacrifices” made by the country to reduce its arrears to US$174 million.Zimbabwe’s arrears stood at US$295 before last week’s payment.”The jury is made up of people with a face, with feelings…I don’t believe the modest payment will escape the natural attention and consideration of the esteemed board,” Gono said.- Nampa-ReutersGideon Gono, the Reserve Bank governor, told Reuters that Zimbabwe’s surprise payment was still inadequate to clear the outstanding arrears on its account.”There is still US$50 million that has to be paid and until that amount is paid, compulsory withdrawal proceedings can still be initiated and we are acutely aware of that,” Gono said.Asked whether Zimbabwe will pay the money before September 9 when the IMF executive board meets, Gono replied: “If we had the funds we would have paid, why would we pay US$120 million and not the rest of it.”Zimbabwe’s surprise last-minute payment left analysts wondering how the government had raised the money when the country was facing an acute shortage of foreign currency.The payment coincided with an IMF team which was in the country for a two-week stay to review Harare’s economic developments and prospects, and was preparing a report for the IMF Executive Board.The IMF mission said nothing on the subject of expulsion.Gono said although Zimbabwe was guilty, he hoped the Fund would take into consideration “the sacrifices” made by the country to reduce its arrears to US$174 million.Zimbabwe’s arrears stood at US$295 before last week’s payment.”The jury is made up of people with a face, with feelings…I don’t believe the modest payment will escape the natural attention and consideration of the esteemed board,” Gono said.- Nampa-Reuters