Published by the government of Zimbabwe
6 July 2009
Harare — THE International Monetary Fund will continue to provide policy advice and targeted technical assistance in the context of regular visits to Zimbabwe.
In a statement last week, IMF Mission Chief for Zimbabwe Mr Vitaliy Kramarenko said as a result of improvements in macro-economic policies, a nascent economic recovery appears to be underway.
"A more liberal economic environment, price stability, a deepening in financial intermediation and increased access to foreign credit lines underpinned a pick up in economic activity," he said.
Mr Kramarenko said the public finances benefited from the recovery in economic activity and consumption.
"The Government matched expenditure to revenue during January-May 2009; and significant increases in budget revenue in recent months have made it possible to start implementing non-wage expenditures in critically important social areas," he said.
He said to sustain positive economic trends and improve living standards, reform and stabilisation efforts need to be stepped up.
"In particular, the authorities would need to create sufficient fiscal space for non-wage expenditures in social spheres and critical infrastructure, establish workable co-ordination mechanisms for attracting direct donor financing of priority social programmes, improve Reserve Bank of Zimbabwe governance, further promote financial intermediation, and strengthen the business climate.
"IMF staff will continue to provide policy advice and targeted technical assistance in the context of regular visits," said Mr Kramarenko.
He said access to IMF financing would require donor financial support for arrears clearance to official creditors and a sustained track record of sound policies.
The IMF officials visited Harare from June 22 to 30 to review progress in implementing the Government's Short-Term Emergency Recovery Programme and to discuss the forthcoming mid-year revision of the 2009 budget and the underlying macro-economic outlook.
The IMF team met Prime Minister Morgan Tsvangirai, Finance Minister Tendai Biti, Reserve Bank of Zimbabwe Governor Dr Gideon Gono and other senior officials, as well as representatives of the financial, business, and diplomatic communities.
"The mission would like to thank the authorities for close co-operation and warm hospitality," said Mr Kramarenko.
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