Friday, February 19, 2010

Major concessions... terribly run countries in order to compete with Chinese investors.

This helps an investment bubble to form in Africa, a process that is still on-going (and will take a few years to mature). An interesting about-face from the international community.

IMF Executive Board Restores Zimbabwe’s Voting Rights and Takes Steps Towards Unfreezing Access to the General Resource Account
Press Release No. 10/53
February 19, 2010

The Executive Board of the International Monetary Fund (IMF) decided today to restore Zimbabwe’s voting and related rights, and its eligibility to use resources from the IMF’s General Resources Account (GRA), following a request from Zimbabwe’s Finance Minister Tendai Biti.

Notwithstanding the restoration of the eligibility to use GRA resources, Zimbabwe will not be able to use resources from the GRA or the Poverty Reduction and Growth Trust (PRGT) until it fully settles its arrears to the PRGT (SDR 89.4 million or about $140 million). Access to IMF lending resources is also subject to IMF policies on the use of such resources, including a track record of sound policies and the resolution of arrears to official creditors, which would require donor support. Following today’s decision any remaining issues on further normalization of relations will be addressed over time.

A number of remedial measures remain in place, as Zimbabwe still has outstanding arrears to the PRGT. These are (i) the declaration of non-cooperation; (ii) the suspension of IMF technical assistance, except in targeted areas (see below); and (iii) the removal of Zimbabwe from the list of PRGT-eligible countries.

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