IMF praises Zimbabwe’s economic development but claims that arrears prevent credit
The International Monetary Fund hailed recent economic improvements as talks on a possible staff-monitored program move forward, but said on Thursday that it is still unable to lend to Zimbabwe because of the country’s outstanding debts.
Head of the IMF’s African Department Abebe Aemro Selassie told Reuters, “Zimbabwe’s ability to borrow financially from us is constrained by the fact that they have arrears through the African Development Bank, the World Bank, and other bilateral creditors.”
He pointed out that in order to show Zimbabwe’s government’s dedication to strong macroeconomic policies, the international lender has been providing assistance through a structured discussion framework.
“And we are hoping to reach agreement on a staff-monitored program in that context,” Selassie said.
As part of its larger debt resolution efforts, Zimbabwe, which owes about $12.2 billion in external arrears, is also looking to obtain $2.6 billion in bridging financing by the middle of 2026.
An informal agreement between an IMF member nation and IMF employees to keep an eye on the nation’s economic program without official IMF executive board approval is known as a staff-monitored program.
“We are very actively engaged, working with the governor and the minister to find a solution,” Selassie stated.
In addition, Selassie praised Zimbabwe’s monetary and fiscal reforms, pointing to a decrease in central bank funding as a vital step in containing inflation and maintaining currency rate stability.
During this week’s annual sessions, Zimbabwe’s finance minister reported that its team held “fruitful deliberations” with the World Bank and IMF.
Furthermore, it opened a new chapter for Zimbabwe’s administration by confirming that an IMF delegation will travel to Harare at the end of October to discuss and coordinate on the proposed staff-monitored program, which the ministry referred to as “a key priority.”
