The programme, which is an informal agreement between the country’s authorities and International Monetary Fund (IMF) staff to monitor the implementation of the authorities’ economic program, represents Zimbabwe’s first IMF agreement in more than a decade.
“The authorities have taken corrective measures to ensure a track record of policy implementation going forward. The SMP provided a useful anchor for Zimbabwe in a difficult election year,” the IMF said.
“However, progress in implementing the program was slowed by a long electoral process and a protracted post-election transition, as well as an adverse external environment. Thus, a number of quantitative targets and structural benchmarks were not met.”
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It added that the authorities have begun implementing policy measures aimed at addressing the 2014 fiscal gap, enhancing financial sector stability and moving forward with delayed structural reform measures.
“The authorities have reiterated their continued commitment to the policies under the SMP and to enhanced engagement with their creditors and the international community,” it said.
“A successful conclusion of the third review could pave the way to a successor SMP, which the authorities have indicated they may request, to build on their achievements and support a stronger policy framework.”
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The IMF also indicated that staff would remain engaged with the authorities to monitor progress in the implementation of the authorities’ economic program, and would continue providing targeted technical assistance to support Zimbabwe’s adjustment and reform programme.