IMF offers Zim lifeline

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Mike Bimha

The International Monetary Fund (IMF) could lend Zimbabwe $500 million, as early as mid next year subject to the country clearing its arrears with international lending institutions, an IMF executive has said.

BY TATIRA ZWINOIRA

The money would be part of the IMF stipulated quota for Zimbabwe, which is SDR350 million (about $485 million). Special Drawing Rights (SDR) is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ of official reserves. It fluctuates against major currencies.

Speaking on the side lines of the Zimbabwe National Chamber of Commerce Business Review Conference yesterday in Harare, IMF country representative Christian Beddies said the lending is dependent on the commitment from government in completing the economic reform plan, the Staff Monitored Programme (SMP). The third and final review of the SMP will be done in the first quarter of 2016.

“It depends on completing the SMP successfully and the good news is the authorities are very committed to completing that programme successfully. We need to agree on a medium-term programme that is home grown it should come from the authorities and should be something that we could support and if all goes well that could be around middle next year,” he said.

“Zimbabwe has a quota, which is SDR350 million, and how much of that quota we would lend over a three year period. It also depends on the balance of payment needs but they could get 100% of that.”

Beddies said Zimbabwe has to meet at least three requirements that include clearing the $1,8 billion arrears to the World Bank, IMF and the African Development Bank.

He said Zimbabwe should set up a financial programme that addresses the deep rooted structural issues and approach the Paris Club for a debt treatment before IMF can consider lending to Zimbabwe.

The Paris Club is an international informal group of officials from creditor countries, whose role is to find co-ordinated and sustainable solutions to the payment difficulties experienced by debtor countries.

Mike-Bimha

Confederation of Zimbabwe Industries vice-president, Sifelani Jabangwe said the loan from the IMF and other international lending Institutions is cheaper, as current interest rates were unfavourable.

“From our end, as the private sector, we are concerned about how soon we have access to finance because right now the finance we have access to is around anywhere between 15% to 28% that is unsustainable,” he said.

“As others have highlighted, as soon as you get that loan it is a non performing loan because there is no way you can perform.”

Industry and Commerce minister Mike Bimha said foreign direct investment “is an affordable way of bringing in equity since it is cheaper than loans”.

1 COMMENT

  1. You’ve got to read this Excerpts from an interview with a Jewish leader about Blacks.

    INTERVIEWER: Why are blacks so behind Economically?

    JEWISH LEADER:The only aspect blacks understand is Consumption. Blacks don’t understand the importance of building wealth.

    The fundamental rule is to keep your money within your racial group. We build Jewish business, hire Jewish, buy Jewish and spend Jewish.

    There is nothing wrong with that but it is a basic rule blacks cannot comprehend and follow;

    “He kills his fellow blacks daily instead of wanting to see his fellow black do well” 93% of blacks killed in America are by other blacks.

    Their leaders steal from their people and send the money back to their colonial master from whom they borrow the same money from.

    Every successful black want to spend his money in the country of his colonial masters.

    They go on holiday abroad, buy houses abroad, school abroad etc instead of spending this money in their own country to benefit their people.

    Statistics show that the Jew’s money exchanges hands 18 times before leaving his community while for blacks it is probably a maximum of once or even zero.

    Only 6% of black money goes back into their community. This is why Jews are at the top and blacks are at the bottom of every ladder of society.

    Instead of buying Louis Vuitton, Hermes, expensive cars, shoes, houses, dresses etc, blacks could industralize Africa, build banks and get rid of colonial institutions by putting them out of business.

    INTERVIEWER:Your thoughts on failure of blacks after 150yrs?

    JEWISH LEADER:Well, nothing is ever the blackmans fault. His compulsive habit of killing his own, compulsive material consumption.

    His inability to build businesses or preserve wealth are usually somebody else’s fault.

    INTERVIEWER: So what can blacks do to liberate themselves

    JEWISH LEADER: Blacks must take responsibility. Blacks must unite.

    And vehemently fight corrupt leaders who run down their country and run to IMF as though IMF is Father Christmas.

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