Zimbabwe not stable enough for IMF

Political conditions in Zimbabwe have not reached the level of stability for it to qualify for financial help from the International Monetary Fund's poverty reduction and growth trust, MPs heard.

"A number of steps have to take place before a deeper engagement can take place with Zimbabwe," the IMF’s senior resident representative Alfredo Cuevas said in a briefing to the standing committee on finance.

"Our teams visit Zimbabwe regularly and provide advice. We are also providing some technical assistance for the rebuilding of certain macro economic management institutions.

"That is what our board has authorised the staff of IMF to do. It is not until the board moves and takes a different decision that the IMF’s staff can go deeper into relationship with the country," he said.

Zimbabwe still had to clear its arrears with the poverty reduction and growth trust, which funds loans to the organisation’s lowest-income member countries.

"What happens is that eventually there is a political consensus at the level of the board which facilitates a country to clear those arrears.

"It wouldn’t be expected country to do it out of its own pocket. That will happen when the political conditions in Zimbabwe have reached a level of stability that gives comfort to the board."