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| author/source:AFP | |||
| published:Sat 5-Sep-2009 | |||
| posted on this site:Sun 6-Sep-2009 | |||
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| Article Type : News | |||
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| The IMF said the resources are actually controlled by the finance ministry |  | ||
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| Harare - Zimbabwe has received about $400-million (about R3.2-billion) in support from the International Monetary Fund, the lender said on Saturday, part of its broader effort to cushion the blows of the global economic crisis. The support for Zimbabwe is a small part of the IMF's offering last month of so-called Special Drawing Rights (SDRs) equivalent to about $250-billion (about R2-trillion) provided to all of its 186 members. "There is no conditionality on the use of this allocation," the IMF office in Pretoria said in a statement. But the SDRs are not part of normal loan programmes, which put cash directly into state coffers, tied to strict conditions on its use. To convert the SDRs into hard currency, Zimbabwe would have to find another country to buy them. Otherwise the money serves to bolster Harare's meagre foreign reserves. The IMF support has already reignited tensions within the unity government between veteran President Robert Mugabe and his erstwhile rival Prime Minister Morgan Tsvangirai. Controversial central bank governor and Mugabe loyalist Gideon Gono, who presided over the demise of the Zimbabwe dollar, has claimed control over the resources in state media. But the IMF said the resources are actually controlled by the finance ministry, headed by Tsvangirai's top aide Tendai Biti, who declined to comment on the scheme. An SDR is an interest-bearing IMF asset based on a basket of international currencies - the dollar, yen, euro and pound - that is calculated daily and which members can convert into other currencies. Harare will not be allowed to receive a separate SDR allocation worth about $100-million (about R800-million) this month, because Zimbabwe still owes about R1.2-billion in arrears to the global lender, the IMF added. back to top | |||
Zimbabwe's coalition government is discussing a credit line of nearly $1bn with China, after Morgan Tsvangirai, the prime minister, secured less funding than had been hoped during a three- week trip to Europe and the US.
Mr Tsvangirai yesterday told a press conference in Harare that Tendai Biti, his finance minister, had negotiated a $950m (€677m, £577m) deal, although an official at the Chinese embassy said that the arrangement was "still under discussion".
News of the potentially significant Chinese support coincided with a visit to Beijing by a delegation from Robert Mugabe's Zanu PF - which since February has been sharing power with Mr Tsvangirai's Movement for Democratic Change.
Mr Mugabe, Zimbabwe's president, last week derided Mr Tsvangirai's overseas mission as a failure and announced that he had sent his own party delegation led by Emmerson Mnangagwa, the defence minister, to east Asia and Russia.
Western donors are insisting on progress by the government in guaranteeing human rights and restoring the rule of law, and are seeking resolution of Zimbabwe's long-standing external debt arrears before committing themselves.
China appears more willing to step up its long-term interest in Zimbabwe. Only last week, Yuan Nansheng, Beijing's outgoing ambassador to Zimbabwe, said a growing number of Chinese companies were looking at opportunities there.
"I have great confidence in the future of Zimbabwe. I think since the establishment of the inclusive government, the situation in Zimbabwe is getting better and better, step by step," said Mr Yuan.
Mr Tsvangirai yesterday said he had secured aid pledges of more than $500m during a trip in which he met Barack Obama, US president, and European leaders, more than double the $202m announced last week by Mr Biti.
The prime minister stressed that "other aid" would only be forthcoming once Zimbabwe created a democracy and improved its human rights record.
"If we want outside assistance, we must first prove that we are able to fulfil the obligations we have undertaken within the agreement [the political deal to establish the coalition government] that was brokered by SADC [the Southern African Development Community]," he said.
The government claimed that prior to Mr Tsvangirai's tour it had raised $1bn in credit lines from other African countries - notably Botswana and South Africa - and the PTA Bank, which is part of the Comesa regional economic integration organisation and the Cairo-based Africa Export-Import Bank. Most of these funds were to finance imports.
Mr Tsvangirai played down threats by Thokozani Khupe, his deputy, of the MDC's "disengagement" from the unity government, saying that while there were "frustrations" his party had no intention of pulling out.
Ms Khupe made the threat on Monday after MDC ministers had boycotted a cabinet meeting, which had been moved forward from yesterday to suit Mr Mugabe, who is attending an African Union summit in Libya.