Zimbabwe coughs up millions to pay IMF debt

Zimbabwe has paid back $120-million (about R780-million) of its $300-million debt to the International Monetary Fund, which had threatened to expel Harare for its arrears.

A state television statement said on Wednesday: "This development is a source of immense national pride as it demonstrates the country's unwavering commitment to turn around its economic fortunes."

Finance Minister Herbert Murerwa said it proved that "no one can write off Zimbabwe as yet" and that "we can still do things on our own".

An IMF team is currently in Zimbabwe for key talks, which ended on Wednesday.

South Africa agreed in August to step in with a loan to ensure that Harare retain its IMF membership. Talks held in Pretoria reportedly yielded a tentative agreement on a loan of between $200-million and $500-million, including about $100-million to be paid to the IMF.

Wednesday's news bulletin quoted the Reserve Bank of Zimbabwe as saying the amount paid back "does not nullify or close present negotiations with South Africa" on a bail-out loan.

Zimbabwe's economy has shrunk by 30 percent in the past four years following the seizures in 2000 of about 4 500 white-owned commercial farms.

President Robert Mugabe's government has blamed drought and sanctions by the European Union and the US for the country's economic decline, characterised by triple-digit inflation and high unemployment. - Sapa-AFP