You have commented 339 times on Rantburg.

Your Name
Your e-mail (optional)
Website (optional)
My Original Nic        Pic-a-Nic        Sorry. Comments have been closed on this article.
Bold Italic Underline Strike Bullet Blockquote Small Big Link Squish Foto Photo
Submit your comments on this article
Africa Subsaharan
Zim okay ... for now
2009-05-10
[Mail and Globe] The International Monetary Fund (IMF) believes Zimbabwe's short-term macro-economic prospects have brightened somewhat, but it warns that the long-term outlook remains grim in the absence of international support and the threat of growing infighting in the country's new coalition government.

The report, exclusively obtained by the Mail & Guardian, followed the IMF's first visit to Zimbabwe since the formation of the unity government.

It says the country needs $200-million in urgent budgetary support and $300-million for immediate humanitarian assistance in the form of food aid, health and education.

Caught between its inability to raise foreign budgetary support and the need to convince its restive workers to return to work on meagre $100 monthly allowances, the government faces the threat of civil unrest, says the IMF.

The fund says currency reforms have helped stabilise the economy, halting Zimbabwe's world-record inflation and improving its short-term prospects. But "despite a brighter short-term macro-economic outlook, Zimbabwe will not be able to discharge its external debt service obligations in 2009".

The IMF regards the most significant risks as:
  • The emergence of more political disagreements among coalition partners, resulting in policy reversals. Further internal conflict was narrowly averted this week when police rearrested 18 opposition activists facing terrorism charges;

  • Budget shortfalls forcing Zimbabwe to cut back on expenditure and triggering social unrest; and

  • Bank failures, as institutions fail to adjust to the new currency system.
Unions are likely to oppose strongly an IMF recommendation to cap the state wage bill. This week the government averted a teachers' strike after donors promised to step in.

According to the IMF the government insists that poor wages are sapping morale. Instead, Zimbabwe "would conduct a government payroll audit with a view to removing ghost workers", the report says.

The IMF says Zimbabwe has agreed to further concessions on the currency front, which will see the budget presented in rands.
Posted by:Fred

#2  The IMF regards the most significant risks as:

The IMF neglected to add 3rd grade graduate Jacob Zuma's accessension in South Africa.
Posted by: Besoeker   2009-05-10 12:19  

#1  Gimme,gimme,gimme NOW
Posted by: Chunky Sloluper1724also known as Redneck Jim   2009-05-10 11:16  

00:00