IMF agrees to set up multi donor trust fund for Zimbabwe

source: SW Radio Africa
By Violet Gonda
28 April 2009

Finance Minister Tendai Biti was expected to leave the US on Tuesday evening, following a fundraising trip to try and get immediate financial rescue packages from the US government, the International Monetary fund (IMF) and the World Bank.

It is understood that although there was no sign of an immediate bail out by the institutions, the IMF has agreed to set up a multi donor trust fund to be run by itself, the United Nations Development Program, the World Bank and the African Development Bank. It’s reported the money will be used ‘for budgetary support until the inclusive government has a track record’.

Massive corruption and the bad financial policies of the Reserve Bank Governor Gideon Gono have meant that the Zimbabwean government has no economic credibility. It is understood that this trust fund will be used as a stop gap measure, until such a time as the government can be trusted by the international funding institutions. The funds will be sent direct to Tendai Biti’s Ministry of Finance and will completely bypass the Reserve Bank.

The news comes after the IMF’s Africa Department Director, Antoinette Sayeh, said that the actions taken [continue reading]

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