All paid up, cash strapped Zimbabwe clears IMF debt

Originally posted 2016-10-24 19:33:41.

ZIMBABWE  has cleared its 15 year arrears with the International Monetary Fund (IMF), by  paying $US 108 million,  says the Fund.

Zimbabwe, which has been in arrears since 2001, used its allocation of Special Drawing Rights (SDRs) allocated to all IMF member states in 2009 as part of a global financial rescue package to clear the outstanding amount.

“On October 20, 2016, Zimbabwe settled its overdue financial obligations to the Poverty Reduction and Growth Trust (PRGT) of the IMF.” says  IMF spokesperson Gerry Rice in a statement.

“To settle these obligations, which amounted to SDR 78.3 million (about US$107.9 million), Zimbabwe transferred part of its SDR holdings kept at the IMF to the PRGT account making it  current on all its financial obligations to the IMF.”

Harare received US$500 million in SDR, released by the IMF to cushion member countries from the global financial crisis in 2009 but maintained reserves of about US$130 million and  is working on a plan to re-engage international lenders following years of isolation after it defaulted on loans at the turn of the century.

Zimbabwe still owes AfDB (US$601 million) and World Bank (US$1,15 billion).

Zimbabwe, which registered an average 10 percent economic growth between 2009 and 2012, badly needs new capital and investment to starve off a recession. – the Source