Ahead in loan repayments to IMF

Zimbabwe is ahead in its loan repayments of US $1.5 million per quarter to the International Monetary Fund (IMF). Local economist Dennis Nikisi told IRIN that "by making those payments, it shows [Zimbabwe's] commitment to meeting our obligations ... it is the intention that is important", although the payments made so far "are still tiny, compared to how much we owe". At the end of June, Zimbabwe's arrears to the Fund amounted to almost US $295 million, "which is quite a lot of money ... but the fact that the Reserve Bank governor, Dr Gono, is striving to meet those commitments will engender a lot of goodwill," Nikisi said. The IMF office in Zimbabwe confirmed that "during 2004, Zimbabwe has so far made 10 payments of US $1.5 million each to the Fund, so total payments amounted to US $15 million". This puts Zimbabwe well ahead of its quarterly repayment schedule - a situation that could bode well for future dealings with the Bretton Woods institution. "I'm hoping that in the not too distant future, Gono can go back to the IMF and tell them about what we've been doing. And I think the IMF and other bilateral donors will listen to us more sympathetically than they have in the past," Nikisi said. In July the IMF's executive board decided "to postpone a recommendation for compulsory withdrawal, providing Zimbabwe with another chance to strengthen its cooperation with the Fund in terms of economic policies and payments". This followed what the Fund called "limited improvements in economic policy" and the resumption of loan repayments by Zimbabwe.