Zimbabwe repays part of IMF debt

Zimbabweans face desperate shortages of fuel

The International Monetary Fund says Zimbabwe has repaid US$120m, a substantial part of its debts.

Zimbabwe had owed nearly $300m before the payment, raising the possibility of the country's expulsion from the IMF.

An IMF delegation is currently in the country and has been talking to the government, before the IMF decides on 9 September whether to expel Zimbabwe.

Zimbabweans are facing a deep economic crisis, with high unemployment, rampant inflation and food and fuel shortages.

Reserve Bank Governor Gideon Gono told The Herald newspaper the funds came from exporters and free funds holders.

Q&A: Zimbabwe and IMF

"This is a modest payment meant to demonstrate our sincerity with respect to our international obligations," Dr Gono told the government-controlled newspaper.

'Guilty party'

Asked whether the payment would affect the prospect of expulsion from the IMF, Dr Gono said: "We are a guilty party from a technical point of view.

President Mugabe's government is facing expulsion from the IMF

"All we can do is to plead mitigatory circumstances to our arrears situation and pray that the jury will see for itself how genuine our efforts at self-correction are."

In recent weeks there has been speculation that South Africa would pay part of Zimbabwe's debt directly to the IMF.

Dr Gono was quoted as saying negotiations with South Africa were still in progress, and that the latest payment to the IMF would not undermine ongoing deliberations.

South African role

On Wednesday, South African Foreign Minister Nkosazana Dlamini-Zuma said South Africa would continue its engagement with Zimbabwe to prevent a complete collapse.

"We may not have the results that you expect, but it doesn't mean that we are not doing anything," she said in response to questions in parliament.

"I don't think we should think or deceive ourselves and think we have some magic that we can wave and get Zimbabwe to change if they don't want to change," the foreign minister said.

On reports that President Robert Mugabe had rejected South African financial help because of conditions attached to it, Dr Dlamini-Zuma said South Africa could not "force Zimbabwe to take a loan".