Zimbabwe: First Review of the Staff-Monitored Program; Staff Report; and Press Release
IMF Staff Country Reports, April 28, 2015
Source details
- Canonical URL
- Zimbabwe: First Review of the Staff-Monitored Program; Staff Report; and Press Release
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Bibliographic details
- Published: April 28, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475518771.002
Context
- Authorities have made progress in implementing macroeconomic and structural reform programs despite economic and financial difficulties.
- Policy reform agenda during 2015 will continue to focus on:
- (a) reducing the primary fiscal deficit to raise Zimbabwe’s capacity to repay;
- (b) restoring confidence in the financial system;
- (c) improving the business climate;
- (d) garnering support for an arrears clearance strategy.
Recent developments, outlook, and risks
- Growth has slowed and is expected to weaken further in 2015.
- Despite the favorable impact of lower oil prices, the external position remains precarious and the country is in debt distress.
- Key risks to the outlook:
- a further decline in global commodity prices;
- fiscal challenges;
- possible difficulties in policy implementation.
- Authorities are committed to intensifying efforts to ensure successful program implementation and to lay the ground for stronger, more inclusive, and lasting economic growth.
Program performance and structural reforms
- All quantitative targets and structural benchmarks for the first review under the staff-monitored program (SMP) were met.
- Authorities demonstrated strong commitment to the program in a difficult economic and financial environment.
- Meaningful progress made on other key structural reforms, including:
- making operational an asset management company;
- amending the indigenization and empowerment law.
Reengagement with creditors
- Authorities have stepped up reengagement with creditors.
- Increased payments to the World Bank (WB) and the African Development Bank (AfDB), described as a key step in the roadmap toward seeking rescheduling of bilateral official debt under the umbrella of the Paris Club.
- Developments seen as important steps toward reengaging with the international financial institutions (IFIs).
- Authorities plan to step up efforts to build consensus among creditors and development partners on ways to address the external arrears.
Content in this bundle
- _cr15105 — Executive Summary