Zimbabwe makes fresh IMF payment

Harare said a recent payment was funded by cotton and tobacco sales

Zimbabwe has paid another $15m (£9m) to help reduce its debt arrears with the International Monetary Fund, according to its state-run Herald newspaper.

The move comes a month after President Robert Mugabe's government gave the IMF $120m to avoid the risk of being thrown out from the organisation.

Zimbabwe has twice been threatened with expulsion unless it started to pay off interest from a $4.5bn loan.

The IMF has said it would return to the issue in six months time.

We are not making these payments to show off, but simply doing the right thing for our country and its citizens Central bank chief Gideon Gono

Zimbabwe now owes the fund a total of $160m, and has pledged to clear this by November 2006.

'Duty and honour'

Its central bank chief Gideon Gono told the Herald that the government would not be "blowing our trumpets" about the latest payment.

"We are not making these payments to show off, but simply doing the right thing for our country and its citizens," he said.

"It is a matter of duty and honour for our country as well as perseverance in the face of adversity."

Mr Gono said he would soon reveal how the fresh payment was funded.

He had earlier claimed that last week's $120m payment was funded by exports - such as cotton, tobacco and minerals - and foreign exchange purchases.

Yet with Zimbabwe's economy in crisis, critics had accused Zimbabwe of raiding the foreign currency bank accounts of exporters.

Mr Mugabe's administration strongly denied the claims.

Mr Gono did however reveal that Zimbabwe was in discussions to secure a loan from the South African government.

Zimbabwe is facing an economic crisis, with an unemployment level of more than 70%, accelerating inflation and shortages of food and fuel.

The economy is estimated to have contracted by 30% over the past six years.

Mr Mugabe blames Western "sanctions and boycotts" for most of the country's financial problems, while critics blame the government's own reforms, including its controversial seizure of white-owned farms.