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Last Updated: Monday, 22 August 2005, 14:28 GMT 15:28 UK
IMF considers Zimbabwe expulsion
Zimbabwe President Robert Mugabe
President Mugabe's government is being urged to revive the economy
The International Monetary Fund (IMF) is holding discussions in Zimbabwe on Monday, ahead of a meeting over whether to expel the African nation.

The IMF has urged President Mugabe's government to sort out the economy, which suffers from hyper-inflation, a collapsing currency and debt arrears.

Following the week-long discussions in the capital Harare, the IMF's board will meet in September.

Zimbabwe owes $295m (163.5m) in late debt repayments to the IMF.

South African aid

Zimbabwe has fallen behind in its IMF repayments since 2001 and in June the fund urged it to take "decisive action" to lower its deficit, which some economists estimate is close to 22% of gross domestic product.

Earlier this month, South Africa indicated that it might help to pay Zimbabwe's debts.

However, it said that any bailout of Zimbabwe would have to be "within the context of their programme of economic recovery and political normalisation".

South Africa also intimated that it may look at taking over Zimbabwe's IMF debt as a means of preventing the country's expulsion.


SEE ALSO:
IMF economic team visits Zimbabwe
19 Aug 05 |  Business


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