By Derick Tsimba

Government recently signed off a Staff Monitored Programme (SMP) with the International Monetary Fund (IMF), a move that should speedily assist the process of implementing the TSP key reforms.

The Ministry of Finance and Economic Development said this in its October 2019 report of progress on policy reforms.

Government’s initiative on SMP will allow the country to rebuild its economic policies to ensure a robust reengagement process with the international community, said the Ministry of Finance.

“Government has signed off on a SMP with the IMF covering the period May 15, 2019 to March 15, 2020. The SMP seeks to assist Zimbabwe implement key reforms as outlined in the Transitional Stabilisation Programme (TSP) that way allowing the country to build a track record of sound economic policies as it seeks to reengagement with the international community.

“The monitoring of the SMP will be through three reviews, end of June 2019, end of September 2019, and end of December 2019 based on six quantitative benchmarks and nine structural benchmarks. As at end of June 2019, Government met four out of six quantitative targets and missed the target on floor on stock of international reserves and ceiling on credit to the nonfinancial public sector from the RBZ. The target on reserves was missed by US$507 million reflecting excessive borrowing necessitated by imports of critical goods and services e.g. fuel, electricity, drugs, wheat, etc,” said the Ministry.

The Harare Post has learnt that Government is adopting regulations that ensure all expenditure commitments are recorded. The Implementation of SMP, in conjunction with key reforms in the TSP will enhance development partners and creditors support to clear debts.