IMF lifts censures against Zimbabwe but new loan hurdles remain

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WASHINGTON (Reuters) – The International Monetary Fund has removed remedial measures against Zimbabwe after the country settled its overdue financial obligation to the Fund’s Poverty Reduction and Growth Trust last month, the IMF said on Monday.

The move by the IMF’s executive board lifts a declaration that Zimbabwe is not cooperating with the organization, ends a suspension of technical assistance to Zimbabwe and restores Zimbabwe to the list of countries that are eligible to benefit from the trust.

Zimbabwe restored about $107.9 million in arrears on Oct. 20, ending more than 15 years of arrears to the trust.

The board decision is another step towards normalizing relations with the Fund. But the IMF has said it cannot consider a new IMF loan program for Zimbabwe until the country clears more than $1 billion in World Bank arrears and another $600 million-plus owed to the African Development Bank, as well as any arrears to bilateral lenders and private creditors.

(Reporting by David Lawder; Editing by Sandra Maler)

 

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