The International Monetary Fund (IMF) restored voting rights to Zimbabwe on 22 February 2010, but any new loans for the cash-strapped country will only be considered once its arrears of about US$140 million to the Poverty Reduction & Growth Trust (PRGT) were paid, an IMF spokesman told IRIN.
"With the full settlement of GRA (general resource account) arrears in 2006, and the elimination of multiple currency practices and various exchange restrictions in 2009, Zimbabwe does not have breaches of obligations under the Articles of Agreement ... Therefore, the restoration of Zimbabwe's voting and related rights is fully consistent with the IMF's rules and procedures," IMF spokesman Alistair Thomson told IRIN.
Zimbabwe's voting rights were suspended in 2003 after the IMF board adopted a declaration of non-cooperation regarding the country's overdue financial obligations, which meant it was no longer eligible to borrow from the PRGT.
"In practice it [restoration of IMF voting rights] means that Zimbabwe can only receive access to GRA resources once it has cleared arrears to the PRGT [of about US$140 million] and satisfied other requirements under the IMF policies on the use of IMF lending resources, including the resolution of arrears to official creditors. The latter would require donor support," Thomson said.
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"With the full settlement of GRA (general resource account) arrears in 2006, and the elimination of multiple currency practices and various exchange restrictions in 2009, Zimbabwe does not have breaches of obligations under the Articles of Agreement ... Therefore, the restoration of Zimbabwe's voting and related rights is fully consistent with the IMF's rules and procedures," IMF spokesman Alistair Thomson told IRIN.
Zimbabwe's voting rights were suspended in 2003 after the IMF board adopted a declaration of non-cooperation regarding the country's overdue financial obligations, which meant it was no longer eligible to borrow from the PRGT.
"In practice it [restoration of IMF voting rights] means that Zimbabwe can only receive access to GRA resources once it has cleared arrears to the PRGT [of about US$140 million] and satisfied other requirements under the IMF policies on the use of IMF lending resources, including the resolution of arrears to official creditors. The latter would require donor support," Thomson said.
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