IMF Says Zimbabwe Is Barred From Borrowing Externally, Reliance On RBZ Cut During Staff Monitored Programme
The IMF has said that Zimbabwe will not borrow externally and will cut reliance on the central bank to finance deficits during an IMF staff-monitored programme.
The Government owes $8,8 billion to foreign lenders, $2,6 billion of that in arrears agreed to have its economic and political reforms monitored by the IMF from May 15 to March 15 next year. This is an endeavor to convince foreign donors to restructure and forgive its debt.
The IMF report suggests that Zimbabwe pledged to borrow $400 million from the central bank in 2019, down from $3 billion last year. In addition to that, the treasury will also cut the Government’s salary bill to 67 percent of the budget, down from 79 percent last year.
The Government will remove grain subsidies next year after the central bank scrapped a subsidy on fuel and ordered oil firms to buy dollars on the open market.
Economic growth in the country is, however, expected to suffer from a severe drought and a cyclone that tore through the eastern regions early this year.