The Zimbabwean government said this week it had received “positive feedback” from the International Monetary Fund (IMF), following its request for the lender to carry out a Staff-Monitored Programme (SMP) during the fourth quarter of the year.
Authorities say the SMP is part of the development partners’ requirements for Zimbabwe, which is working out a debt clearance plan with a string of foreign creditors.
Finance minister Mthuli Ncube said in May the SMP was necessary as it “allows us to have a monitored process in terms of our reform agenda”.
In an interview with the Zimbabwe Independent, Zimbabwe Public Debt Management Office head Andrew Bvumbe said “as part of implementation of low-hanging fruit, the Government of Zimbabwe has formally requested a Staff-Monitored Programme from the IMF, and we received positive feedback”.
In May 2019, the IMF approved a one-year SMP for Zimbabwe.
Bvumbe spoke as government and the African Development Bank (AfDB) two weeks ago held a low-key debt summit at the request of creditors and development partners.
Zimbabwe’s total consolidated debt amounts to US$17,5 billion with debt owed to international creditors standing at US$14,04 billion, while domestic debt comes to US$3,4 billion.
Debt owed to bilateral creditors is estimated at US$5,75 billion, while debt to multilateral creditors is estimated at US$2,5 billion.
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According to the AfDB, the summit, the fifth since engagements over debt were scaled up, was held on June 29.
“The Zimbabwean Finance and Economic Development ministry organised the meeting to review three draft policy reform matrices on economics, governance and land tenure and compensation to former farmers under the terms of what are known as the Bilateral Investment Promotion and Protection Agreements,” the AfDB said.
“Let us continue with constructive open dialogue, in good faith, to build confidence and trust in this process,” AfDB quoted Bvumbe as saying during the summit.
“The government of Zimbabwe remains available for any bilateral discussions concerning reforms and any related issues to the arrears clearance and debt resolution process,” it added.
