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Featured Post

Yosef's RV Intel Update from IQDCalls 6-23-17

Published on Jun 23, 2017

Tuesday, November 15, 2016

IMF's Remedial Measures Applied to Zimbabwe Removed

IMF Executive Board Removes Remedial Measures Applied to Zimbabwe

November 14, 2016 | IMF | Source

  • Removal of remedial measures follows Zimbabwe’s full settlement of all of its overdue financial obligations to the PRGT
  • Consideration of any future request for IMF financing would also depend on other applicable policies
The Executive Board of the International Monetary Fund (IMF) approved today, on a lapse of time basis, [1] the removal of the remedial measures applied to Zimbabwe that had been in place because of the member’s overdue financial obligations to the Poverty Reduction and Growth Trust (PRGT), effective November 14, 2016. These measures are: (i) declaration of noncooperation with the IMF ( see Press Release No. 02/28); (ii) the suspension of technical assistance (which had already been partially lifted, see Press release No. 09/152 and Press Release No. 12/405); and (iii) the removal of Zimbabwe from the list of PRGT-eligible countries (see Press Release No. 01/40).

This follows Zimbabwe’s full settlement of all of its overdue financial obligations to the PRGT of SDR 78.3 million (about US$107.9 million) on October 20, 2016 (see Statement by IMF on Zimbabwe). Zimbabwe had been in continuous arrears to the PRGT since February 2001 and was the only case of protracted arrears to the PRGT. Zimbabwe is now current on all of its financial obligations to the IMF.

Notwithstanding the settlement of overdue financial obligations to the PRGT and the removal of remedial measures, consideration of any future request for IMF financing would also require Zimbabwe to comply with other applicable IMF policies, including to: (i) resolve its arrears to multilateral creditors (including the African Development Bank (AfDB), the World Bank, and other multilateral institutions), bilateral official creditors, and external private creditors (if any); and (ii) implement strong fiscal adjustment and structural reforms to restore fiscal and debt sustainability and foster private sector development.

[1] The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.

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