Zim talks with IMF not concluded

HARARE – Zimbabwe is still in talks with an IMF team a week after it arrived to meet President Robert Mugabe’s government, which has struggled to repay its debt to the fund, Finance Minister Herbert Murerwa said yesterday.

“We have not concluded our talks, there is no news at the moment … when we have news we will let you know,” Murerwa told Reuters.Mired in its worst economic crisis since independence, Zimbabwe has struggled to repay its debt arrears of US$295 million (N$1,9 billion) to the fund and faces possible expulsion.Officials from the fund arrived in Zimbabwe last week for talks that were expected to last for about a week, although there was no definite departure date.The IMF visit comes ahead of a September 9 meeting in Washington likely to decide whether to expel Zimbabwe, which approached neighbouring South Africa for a loan estimated by local media to amount to around US$470 million.Analysts believe that part of the loan, if granted, would be used to pay the IMF arrears.In July Zimbabwe’s central bank governor Gideon Gono said the country had stepped up payments to the IMF, repaying US$37 million of its outstanding debt in the previous 18 months.But earlier this month an IMF official said there had been no payments since June.Zimbabwe, grappling with its worst economic crisis since independence from Britain in 1980, is saddled with a US$4,5 billion foreign debt it has struggled to repay due to acute foreign currency shortages since 1999.The crisis, widely blamed on government mismanagement and shown in unemployment of over 70 per cent, triple-digit inflation and acute shortages of fuel and food, has been worsened by the withdrawal of aid by key donors.-Nampa-Reuterswhen we have news we will let you know,” Murerwa told Reuters.Mired in its worst economic crisis since independence, Zimbabwe has struggled to repay its debt arrears of US$295 million (N$1,9 billion) to the fund and faces possible expulsion.Officials from the fund arrived in Zimbabwe last week for talks that were expected to last for about a week, although there was no definite departure date.The IMF visit comes ahead of a September 9 meeting in Washington likely to decide whether to expel Zimbabwe, which approached neighbouring South Africa for a loan estimated by local media to amount to around US$470 million.Analysts believe that part of the loan, if granted, would be used to pay the IMF arrears.In July Zimbabwe’s central bank governor Gideon Gono said the country had stepped up payments to the IMF, repaying US$37 million of its outstanding debt in the previous 18 months.But earlier this month an IMF official said there had been no payments since June.Zimbabwe, grappling with its worst economic crisis since independence from Britain in 1980, is saddled with a US$4,5 billion foreign debt it has struggled to repay due to acute foreign currency shortages since 1999.The crisis, widely blamed on government mismanagement and shown in unemployment of over 70 per cent, triple-digit inflation and acute shortages of fuel and food, has been worsened by the withdrawal of aid by key donors.-Nampa-Reuters