The International Monetary Fund (IMF) will continue to provide policy advice and targeted technical assistance in the context of regular visits to Zimbabwe.
In a statement issued last week, IMF Mission Chief for Zimbabwe Vitality Kramarenko said as a result of improvements in macro-economic policies, a nascent economic recovery appears to be underway.
"A more liberal economic environment, price stability, a deepening in financial intermediation and increased access to foreign credit lines underpinned a pick up in economic activity," he said.
Kramarenko added the public finances benefited from the recovery in economic activity and consumption. "The government matched expenditure to revenue during January-May 2009; and significant increases in budget revenue in recent months have made it possible to start implementing non-wage expenditures in critically important social areas," he said.
The mission chief also said to sustain positive economic trends and improve living standards, reform and stabilization efforts need to be stepped up.
"In particular, the authorities would need to create sufficient fiscal space for non-wage expenditures in social spheres and critical infrastructure, establish workable coordination mechanisms for attracting direct donor financing of priority social programs, improve Reserve Bank of Zimbabwe governance, further promote financial intermediation, and strengthen the business climate," he said.
"IMF staff will continue to provide policy advice and targeted technical assistance in the context of regular visits," said Kramarenko.
The mission chief added that the access to IMF financing would require donor financial support for arrears clearance to official creditors and a sustained track record of sound policies.
The IMF officials visited the Zimbabwean capital of Harare from June 22 to 30 to review progress in implementing the government's Short-Term Emergency Recovery Program and to discuss the forthcoming mid-year revision of the 2009 budget and the underlying macro-economic outlook, Zimbabwean local newspaper The Herald reported on Monday.
The IMF team met Zimbabwean Prime Minister Morgan Tsvangirai, Finance Minister Tendai Biti, Reserve Bank of Zimbabwe Governor Dr Gideon Gono and other senior officials, as well as representatives of the financial, business and diplomatic communities.
"The mission would like to thank the authorities for close cooperation and warm hospitality," said Kramarenko.