IMF team in Zim for progress monitoring

Published: 18 March 2014

A five member International Monetary Fund (IMF) comprising economists is in the country for the first Article IV consultations visit and Staff Monitoring Programme (SMP).

The second visit is set for October this year.

Sources close to the developments said the team, which arrived in the country last week (12 March) is expected to assess economic and financial developments and discuss the country's economic and financial policies with government and central bank officials.

The consultations are known as "Article IV consultations" because they are required by Article IV of the IMF's Articles of Agreement are set to be concluded on March 26.

When a country joins the IMF, it agrees to subject its economic and financial policies to the scrutiny of the international community.

It also makes a commitment to pursue policies that are conducive to orderly economic growth and reasonable price stability, to avoid manipulating exchange rates for unfair competitive advantage, and to provide the IMF with data about its economy.

The IMF's regular monitoring of economies and associated provision of policy advice is intended to identify weaknesses that are causing or could lead to financial or economic instability. This process is known as surveillance.

Last year, IMF managing director approved a Staff-Monitored Programme (SMP) for Zimbabwe, covering the period April-December 2013. An SMP is an informal agreement between country authorities and Fund staff to monitor the implementation of the authorities' economic programme.

SMPs do not entail financial assistance or endorsement by the IMF Executive Board. This programme was Zimbabwe's first IMF agreement in more than a decade.
- zimmail

Tags: IMF,