IMF reaffirms sanctions against Zimbabwe
Source: Reuters
(Adds quotes, background) By Lesley Wroughton WASHINGTON, Feb 23 (Reuters) - The International Monetary Fund on Friday maintained its suspension of financial and technical assistance to Zimbabwe, saying the government had failed to clear its arrears and address a worsening economic and social crisis. The southern African country again averted expulsion from the Washington-based IMF by making small payments toward clearing its arrears, which currently amount to $129 million. The IMF however extended its suspension of Zimbabwe's voting rights and agreed to revisit the issue at a later date. The IMF's actions come amid increasing political tensions in Zimbabwe where inflation is about 1,600 percent, unemployment above 80 percent, and the country is suffering from acute shortages of food, fuel and foreign currency."The board expressed deep concern over the deteriorating economic and social conditions and regretted that the authorities have not undertaken the policies recommended by the IMF," the fund said in a statement. "The board urged Zimbabwe to resolve its remaining arrears ... promptly, and agreed that it will again consider Zimbabwe's arrears in six months," the IMF added. The IMF again urged Zimbabwe to action to stop the economic slide by immediately implementing a comprehensive stabilization package that includes fiscal tightening, and price and foreign exchange liberalization. It also called for fundamental reforms of public enterprises and the civil service, improvements to property rights and governance. The IMF and other key Western donors, including the World Bank, suspended aid to Zimbabwe more than six years ago over President Robert Mugabe's economic policies that are blamed for the economic meltdown. Mugabe, who has ruled for 27 years and turned 83 this week, has accused the IMF of treating his country unfairly and saying Zimbabwe was unlikely to clear the arrears without guarantees that aid and its voting rights would be restored. Western donors withdrew aid and other assistance to the country, accusing Mugabe of widespread human rights violations and for seizing white-owned farms, which has turned the country from a regional bread basket to a nation barely able to feed itself.
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