The International Monetary Fund (IMF) said on Thursday it remains unable to provide financial support to Zimbabwe due to the country’s outstanding arrears, even as it commended Harare for recent economic reforms and confirmed progress toward a potential staff-monitored programme.
“Zimbabwe’s ability to borrow financially from us is constrained by the fact that they have arrears through the African Development Bank, the World Bank, and other bilateral creditors,” said Abebe Aemro Selassie, director of the IMF’s African Department, during a briefing in Washington.
Zimbabwe owes an estimated $12.2 billion in external arrears, which have long blocked its access to international credit markets and concessional lending. The government is seeking $2.6 billion in bridge financing by mid-2026 as part of a broader debt clearance strategy that includes structured talks with international lenders.
Despite those constraints, Selassie acknowledged signs of progress, noting that discussions between Zimbabwe and the IMF have intensified under the framework of a staff-monitored programme, or SMP, an informal arrangement that allows IMF staff to evaluate a country’s economic policies without formal approval from the IMF’s executive board.
“We are hoping to reach agreement on a staff-monitored programme in that context,” Selassie said. “We are very actively engaged, working with the governor and the minister to find a solution.”
The IMF has maintained a close technical relationship with Zimbabwe since the collapse of its last lending arrangement more than two decades ago. In recent years, the Fund has emphasised the need for structural reforms, greater transparency, and policy consistency to rebuild investor confidence.
Selassie praised what he described as “notable improvements” in fiscal and monetary management, including reduced central bank financing of government expenditure, a move seen as essential to curbing inflation and stabilising the local currency. “There is clear progress in strengthening macroeconomic discipline,” he said, while cautioning that sustained reform will be key to restoring credibility with creditors.
Zimbabwe’s finance ministry echoed that sentiment in a statement on Thursday, describing its talks with the IMF and World Bank during the annual meetings in Washington as “fruitful deliberations.” The ministry said an IMF mission is expected to visit Harare at the end of October to finalise details of the proposed SMP, which it called “a key priority for the government.”
The programme, if agreed, would mark Zimbabwe’s most significant step toward re-engagement with international financial institutions in years. It could also pave the way for future debt restructuring, provided that the government meets key benchmarks on fiscal discipline, monetary stability, and governance reforms.
For Zimbabwe, whose economy continues to struggle under a heavy debt burden and persistent inflationary pressures, the stakes are high. Securing IMF endorsement, even informally, would signal renewed confidence in its reform trajectory and potentially unlock broader international support.
But as Selassie noted, the path to full access remains complex. “Until arrears are cleared, Zimbabwe cannot borrow from us,” he said. “What is important now is to continue the reform momentum and demonstrate sustained commitment to stability.”
For now, Zimbabwe’s engagement with the IMF remains a balancing act between optimism and caution, an acknowledgement of progress, tempered by the weight of unfinished business.
