IMF to visit Zimbabwe, assess if country could be placed on SMP

The International Monetary Fund is on course for a virtual staff visit, meant to assess if Zimbabwe could placed in a staff-monitored program, once again.

This time around, the fund staff will deliberate on the recent macroeconomic developments, the country’s measures in tackling the Covid-19 pandemic.

It will also look at the economic outlook, policies and capacity development.

The visit is scheduled for early to mid next month.

The SMP aims to implement a coherent set of policies that can facilitate a return to macroeconomic stability in the country.

Following a visit to Zimbabwe in 2019, IMF officials said the program is now “off-track” due to inconsistent policy implementation.

Meanwhile, Zimbabwe continues to struggle to access external official support on account of its problematic debt record.

“The Zimbabwean government has yet to define the modalities and financing to clear arrears to the World Bank and other multilateral institutions, and to undertake reforms that would facilitate resolution of arrears with bilateral creditors,” IMF said following its consultation then.

“While the 2020 budget includes a significant increase in social spending, it is likely insufficient to meet the pressing social needs.

“Absence of a scaled up in donor support, the risks of a deep humanitarian crisis are high,” IMF officials concluded at the time.

-Zwnews