12 Apr 2019
Zimbabwe and the IMF have agreed to cooperate on several measures in order to boost the country’s economy and its connections with global lenders, the fund revealed.
Together, they agreed to initiate “a coherent set of policies that can facilitate a return to macroeconomic stability".
Gene Leon, head of an IMF delegation, said: "IMF staff and the Zimbabwean authorities have reached an agreement on macro-economic policies and structural reforms that can underpin a staff monitored programme.”
Issues surrounding foreign exchange, increases in unemployment and food shortages have led the Zimbabwean economy to struggle over the past decade.
As Reuters reports, the policies will concentrate on removing the government’s double-digit fiscal deficit and implementing reforms aimed at allowing market forces to control the functioning of foreign exchange and other financial markets. Although no specific targets were revealed, Leon said these policies will benefit private sector growth.
Leon had previously appealed for $613 million from local and foreign donors and met with officials including Finance Minister Mthuli Ncube and Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya in order to discuss policy implementation for economic help.
“Successful implementation... will assist in building a track record and facilitate Zimbabwe’s re-engagement with the international community,” said Leon.