Zimbabwe settles its IMF debt

Zimbabwe has cleared its 15-year-old financial arrears with the IMF, making itself current on all its financial obligations to the institution.

According to Gerry Rice, IMF spokesman, Zimbabwe settled obligations of some $107.9 million by transferring part of its cash holdings at the IMF to the fund's Poverty Reduction and Growth Trust.

Despite these actions, however, a new IMF loan programme for Zimbabwe cannot be considered until the country clears more than $1 billion in World Bank arrears, along with a further $600 billion-plus owed to the African Development Bank (AfDB).

The IMF said in a statement:

"Access to IMF resources would first require the establishment of a credible plan to clear arrears with other IFIs [international financial institutions] and with bilateral creditors, in line with applicable fund policies. It would also require implementing a strong reform agenda to restore economic stability and foster sustained and inclusive growth."