IMF restores Zim voting rights after 7 yrs

WASHINGTON, Feb 19 (Reuters) – International Monetary Fund member countries on Friday restored Zimbabwe’s voting rights after a seven-year suspension but said it could not have access to IMF funds until it had paid off $1.3 billion in arrears.

While the move is more symbolic, it is also a step by the international community to recognize progress so far by Zimbabwe’s new unity government to mend the economy and normalize relations with donors.

“The board decided today to restore Zimbabwe’s voting and related rights, and its eligibility to use resources from the IMF’s General Resources Account, following a request from Zimbabwe’s Finance Minister Tendai Biti,” the IMF said in a statement.

But the IMF said Zimbabwe would not be able to tap IMF funds until it had fully settled its arrears to official creditors including the IMF, World Bank and African Development bank.

“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,” the Fund added.

The IMF suspended Zimbabwe’s voting rights in 2003 over policy differences with the previous government of President Robert Mugabe. Western donors withdraw crucial funding for Zimbabwe and blamed Mugabe’s land reform policies and mismanagement for the collapse in the once prosperous economy.

Since then, Mugabe has formed a unity government with former opposition leader Morgan Tsvangirai, who is now prime minister. The IMF has said there are signs that the economy is starting to recover due to improved policies.

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