The IMF has said that Zimbabwe will not borrow externally and will cut reliance on the central bank to finance deficits during an IMF staff-monitored programme.
The Government owes $8,8 billion to foreign lenders, $2,6 billion of that in arrears agreed to have its economic and political reforms monitored by the IMF from May 15 to March 15 next year. This is an endeavor to convince foreign donors to restructure and forgive its debt.
The Government will remove grain subsidies next year after the central bank scrapped a subsidy on fuel and ordered oil firms to buy dollars on the open market.
Economic growth in the country is, however, expected to suffer from a severe drought and a cyclone that tore through the eastern regions early this year.
More: The Herald