The International Monetary Fund (IMF) has said that Zimbabwe needs to clear its debt with other creditors for it to start receiving financing from the Bretton Woods institution.
Zimbabwe cleared its arrears with the Fund but owes the African Development Bank and the World Bank a combined US$2 billion.
Responding to a question by the Insider on Thursday on how Zimbabwe can go back on track and open doors for financial assistance, IMF Director of Communications, Gerry Rice said:
So what would Zimbabwe need to do to, you know, get financing from the IMF and others? Zimbabwe is in good standing with the IMF, okay, I’ve said that before here. They have cleared their arrears with the IMF, but for financing to be forthcoming from the Fund, they would need to clear their arrears also to other international financial institutions.
We would need some financing assurances as we always do in our programs from other official bilateral creditors, and what I just said and what you asked, agreeing on a coherent set of economic policies that we think would put the country back on the path of macro stability and lay the foundation for growth.
Rice also said that Zimbabwe needed to restore macro and financial stability, something that requires a fiscal adjustment.
The Fund also advised Zimbabwe to adopt reforms to allow the effective functioning of market-based foreign exchange and debt markets.
Rice added that Zimbabwe needed structural reforms, including reform and privatisation of state-owned enterprises.
Zimbabwe also needs to enhance governance including in procurement and revenue administration, and generally improve the business environment.
More: The Insider