Lima Agreement Zimbabwe

Difficulties faced by foreign funds in repatriating money from Zimbabwe have reduced the number of foreign investors in recent years. But the central bank will launch a fund in the coming months to tackle it, Mlambo said, adding that preliminary agreements have been signed with all relevant banks. Zimbabwe has $1.75 billion in arrears abroad. The IMF has proposed in Harare to reduce wages and agricultural subsidies in the public sector, improve transparency in the mining sector, and reach an agreement on compensation for farmers. “In addition, guaranteeing gold revenues could make it more difficult to cancel debt in the future. The key issue is the timing and amount of new funding that could free up arrears. Assessing this case has proven difficult given the uncertainties about the strength of the sustainability restoration policy and the appetite for support within the Paris Club,” the IMF said. The reintegration process is facing strong headwinds,” the IMF said in a report on Zimbabwe. “Hopes now are that the government will respect its side of the Lima Agreement, an initiative that is expected to release new lines of credit,” ZNCC said. “We want to start all the new investments that are coming in so that these funds don`t mix with the local dollar that we have, and there`s still a really liquid foreign currency that they can withdraw. With next year`s elections, the government`s commitment to reforms could ease in the coming months. Hope turned into despair for the government by missing its initial timelines with the international financial institutions.

Outside, the government put its face straight and courageously declared that everything was fine. That was not the case. In July, the International Monetary Fund (IMF) team, which had completed the Article IV consultations on Zimbabwe, made it clear that more work was needed. According to the report, 2016 looks more difficult, as there are no robust economic reforms that guarantee the stability of the deteriorating economy. Click here to access our homepage to receive all the latest messages The World Bank has ranked Zimbabwe 155th out of 189 countries on the direction of the business. In terms of measuring regulatory quality and efficiency, Zimbabwe has gone from 90 to 79 places in terms of solvency and from six to 81 for the protection of minority investors from 189 countries. The growth target of 2.7 per cent in 2016 depends primarily on the Government`s commitment to clear its arrears. “It`s not as bad as it was in December. We are still very happy with our forecasts,” adding that the Zimbabwean economy could grow even faster if planned policy measures were taken to revive the economy. (Karin Strohecker`s editorial report by Hugh Lawson) Mangudya stressed this week to the Zimbabwe Independent that while the government is still committed to the Lima plan, many hurdlees must be overcome before creditors can accept money from Zimbabwe. But, according to the IMF, it could cost an arm and a leg.

You have selected an article from the AllAfrica archive that requires a subscription. However, without a subscription, you can freely access hundreds of today`s African stories and thousands of news articles from our homepage “After starting to implement tax reforms, the government also needs to tackle high employment costs and low productivity in the public sector,” Mlambo said. . . .