IMF managing director Christine Lagarde approved a staff-monitored programme to oversee implementation of economic policies as a first step towards eligibility for external borrowing.The programme, covering April-December 2013, is an informal agreement between country authorities and IMF staff to monitor the implementation of the authorities' economic programme.Zimbabwe has endorsed the programme, its first in more than a decade which does not entail financial assistance, Lagarde said.
"The SMP supports the Zimbabwean authorities' comprehensive adjustment and reform programme and has been endorsed by Zimbabwe's Cabinet, a strong signal of their commitment," she said. "A successful implementation of the SMP would be an important stepping stone towards helping Zimbabwe re-engage with the international community. The SMP focuses on putting public finances on a sustainable course, while protecting infrastructure investment and priority social spending, strengthening public financial management, increasing diamond revenue transparency, reducing financial sector vulnerabilities, and restructuring the central bank."In particular, fiscal consolidation efforts aim to move the primary budget balance from a deficit in 2012 to a small surplus in 2013, helping start what should be a gradual rebuilding of fiscal buffers and international reserves."
