Zimbabwe: Staff-Monitored Program-Press Release and Staff Report

IMF Staff Country Reports, May 30, 2019

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Canonical URL: Zimbabwe: Staff-Monitored Program-Press Release and Staff Report

The Staff-Monitored Program (SMP) for Zimbabwe is intended to assist the authorities in building a track record of implementation of a coherent set of economic and social policies to facilitate a return to macroeconomic stability and assist in reengagement with the international community.
The SMP will be monitored on a quarterly basis.
The new government that assumed office following the July 2018 elections is committed to: addressing the macroeconomic imbalances; removing structural distortions to facilitate a resumption in growth; and re-engaging with the international community including by clearing its external arrears.
Authorities face limited access to external financing and the very low level of international reserves, leaving a very narrow room for manoeuvre.

Significant implementation risks exist for:
- Monetary and exchange rate reforms.
- Addressing governance and corruption weaknesses.
These implementation risks could adversely impact the attainment of SMP objectives.
The SMP is designed in the context of constrained external financing and very low international reserves.

Build a track record of policy implementation to facilitate reengagement with the international community.
Address macroeconomic imbalances and remove structural distortions to support a resumption in growth.
Clear external arrears as part of re-engagement with the international community.

Subjects: Banking; Budget planning and preparation; Currencies; Government debt management; Inflation; Money; Prices; Public debt; Public financial management (PFM).
Keywords: Africa; Budget planning and preparation; CR; Currencies; foreign exchange; Government debt management; government securities; IMF resident representative; Inflation; international community; ISCR; macroeconomic imbalance; managing director of the IMF; nominal GDP; private sector; reform agenda; risks to the SMP; Zimbabwean authorities.