By Nelson Banya
HARARE Oct 31 (Reuters) – Easing of IMF restrictions on
Zimbabwe should help it to clear its mountain of defaulted debt
and pave the way for foreign investment, Finance Minister Tendai
Biti said on Wednesday.
The International Monetary Fund on Tuesday relaxed
restrictions on technical assistance to Zimbabwe, a major step
towards normalising relations with the destitute southern
African country.
Zimbabwe’s voting rights in the IMF were suspended in 2003
over arrears and policy differences with President Robert
Mugabe’s government. Voting rights were restored in 2010,
allowing Zimbabwe to again participate in IMF decision-making.
“The decision basically lifts sanctions against engagement
with Zimbabwe. It’s a major step towards Zimbabwe’s debt payment
programme,” Biti told Reuters.
Biti saw the move as allowing Zimbabwe to work on its
programme to reduce debt owed to global creditors, including the
IMF and World Bank.
“An accelerated debt repayment programme was not possible as
long as those sanctions remained in place,” Biti said.
While Zimbabwe is still not able to tap IMF funding, easing
the restrictions moves it in that direction.
The IMF would want to see a record of sound policies by the
unity government of President Mugabe and Prime Minister Morgan
Tsvangirai before it agrees to a lending programme.
Continued…
