IMF Executive Board Removes Remedial Measures Applied to Zimbabwe

IMF News, November 14, 2016

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The Executive Board approved, on a lapse of time basis, the removal of the remedial measures applied to Zimbabwe that had been in place because of the member’s overdue financial obligations to the Poverty Reduction and Growth Trust (PRGT), effective November 14, 2016.
Press Release No. 16/505.

(i) declaration of noncooperation with the IMF (see Press Release No. 02/28);
(ii) the suspension of technical assistance (which had already been partially lifted, see Press Release No. 09/152 and Press Release No. 12/405);
(iii) the removal of Zimbabwe from the list of PRGT-eligible countries (see Press Release No. 01/40).

Zimbabwe made full settlement of all of its overdue financial obligations to the PRGT of SDR 78.3 million (about US$107.9 million) on October 20, 2016 (see Statement by IMF on Zimbabwe).
Zimbabwe had been in continuous arrears to the PRGT since February 2001 and was the only case of protracted arrears to the PRGT.
Zimbabwe is now current on all of its financial obligations to the IMF.

Consideration of any future request for IMF financing would require Zimbabwe to comply with other applicable IMF policies, including:
- (i) resolve its arrears to multilateral creditors (including the African Development Bank (AfDB), the World Bank, and other multilateral institutions), bilateral official creditors, and external private creditors (if any); and
- (ii) implement strong fiscal adjustment and structural reforms to restore fiscal and debt sustainability and foster private sector development.

The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.

IMF Press Release No. 16/505, November 14, 2016.