Press Release: IMF Executive Board Upholds Sanctions Against Zimbabwe
IMF News, March 8, 2006
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Bibliographic details
- Published: March 8, 2006
Executive Board decision
- Date of press release: March 8, 2006
- The Executive Board met to review Zimbabwe's overdue financial obligations to the Fund and consider sanctions imposed on Zimbabwe.
- Following Zimbabwe's full settlement of its arrears to the IMF's General Resources Account (GRA), the Managing Director withdrew his complaint with respect to compulsory withdrawal (see Press Release No. 06/33).
- The Executive Board decided:
- not to restore Zimbabwe's voting and related rights at this juncture, and
- not to terminate Zimbabwe's ineligibility to use the general resources of the Fund at this juncture.
Arrears status and legal framework
- GRA arrears:
- Zimbabwe made a full settlement of its arrears to the IMF's General Resources Account (GRA).
- PRGF-ESF Trust arrears:
- The Board considered outstanding arrears to the Poverty Reduction and Growth Facility (PRGF)-Exogenous Shocks Facility (ESF) Trust Fund.
- Zimbabwe remains in continuous arrears to the PRGF-ESF Trust since February 2001.
- Zimbabwe is the only case of protracted arrears to the PRGF-ESF Trust, which currently amount to SDR 83 million (about US$119 million).
- Legal separation:
- GRA and PRGF arrears are subject to separate legal frameworks; decisions addressing PRGF-ESF Trust arrears remain in place.
- As a result, Zimbabwe remains excluded from the list of PRGF-eligible countries (see Press Release No. 01/40).
Policy guidance and follow-up
- The Board noted that Zimbabwe's economic crisis calls for urgent implementation of a comprehensive policy package comprising several mutually reinforcing actions in the area of macroeconomic stabilization and structural reforms.
- The Board urged Zimbabwe to continue its efforts to resolve the remaining overdue financial obligations to the PRGF-ESF Trust.
- The Fund agreed to consider further Zimbabwe's overdue financial obligations to the PRGF-ESF Trust within six months of the date of this decision.
Key statistics and references
- Continuous PRGF-ESF Trust arrears since: February 2001
- PRGF-ESF Trust arrears amount: SDR 83 million (about US$119 million)
- Follow-up review timeframe: within six months of the date of this decision
- Related press releases referenced: Press Release No. 06/33; Press Release No. 01/40
Source: Press Release No. 06/45 — IMF, March 8, 2006.