Zimbabwe Set for IMF Economic Programme

Head of the International Monetary Fund (IMF) Christine Lagarde has approved an economic programme for Zimbabwe, designed to support the country’s new currency and various economic reforms.

The Staff Monitored Programme (SMP) is expected to run until March 2020 and will be focused on establishing economic and financial stability to the country.

Various reforms are being considered, including the privatisation of state-owned enterprises and improvements in the business environment.

The Fund has expressed concern regarding the recent introduction of a new domestic currency commenting "These large uncertainties make it particularly difficult to assess the public debt outlook at present, but the expectation is that an updated debt sustainability analysis will be conducted at the first review of the SMP.”

Commenting on the programme the IMF also stated, "The SMP also includes important safeguards to protect the country’s most vulnerable people.”

The Ministry of Finance has indicated that certain measures will be introduced to protect the poor and vulnerable, such as the subsidisation of public transport.