The International Monetary Fund (IMF) said in a statement on Tuesday that it had barred Zimbabwe from future IMF loans or use of its general resources. The decision followed the IMF Executive Board's review of Zimbabwe's financial obligations to the organisation.
The IMF executive board "declared Zimbabwe ineligible to use the general resources of the IMF and removed Zimbabwe from the list of countries eligible to borrow resources under the Poverty Reduction and Growth Facility (PRGF)," the statement said. The PRGF facility allows countries to borrow money at low or reduced interest rates to implement poverty reduction programmes in their respective countries.
"The declaration of ineligibility to use the general resources of the IMF is one of the remedial measures taken to encourage members to settle overdue financial obligations to the IMF," said the statement. The IMF said it would review the situation in Zimbabwe in three months' time.
The IMF said that since mid-February Zimbabwe had fallen behind by about US $53 million in its payments to the organisation.
"The IMF's Executive Board urged the Zimbabwean authorities to make full and prompt settlement of Zimbabwe's overdue financial obligations to the IMF," said the statement. The IMF suspended loans to Zimbabwe in October 1999 after government efforts to liberalise the economy went off-track. In May, the IMF said Zimbabwe had stopped payment on its loans. Zimbabwe's total foreign debt is estimated at US $4 billion.
This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions
Help make quality journalism about crises possible
The New Humanitarian is an independent, non-profit newsroom founded in 1995. We deliver quality, reliable journalism about crises and big issues impacting the world today. Our reporting on humanitarian aid has uncovered sex scandals, scams, data breaches, corruption, and much more.
Our readers trust us to hold power in the multi-billion-dollar aid sector accountable and to amplify the voices of those impacted by crises. We’re on the ground, reporting from the front lines, to bring you the inside story.
We keep our journalism free – no paywalls – thanks to the support of donors and readers like you who believe we need more independent journalism in the world. Your contribution means we can continue delivering award-winning journalism about crises. Become a member of The New Humanitarian today.