The Ministry of Finance and Economic Development says it has made a drawdown of US$ 311 million from the International Monetary Fund (IMF) package of Special Drawing Rights (SDRs) worth US$ 958 million in supporting various sectors of the economy.
In an update, the government said it is going to make another drawdown for the second half of the year amounting to US$ 300 million this time with focus on boosting productive sectors of the economy, mainly agriculture.
The SDRs will be utilized over a period of three years with an amount of US$ 311 million disbursed up to June 2022 towards the following,: procurement of Covid-19 vaccines (US$ 71 million), vaccination roll-out program (US$ 6 million), medical and testing equipment (US$ 10million), social protection scheme of rural and peri-urban households (US$ 80 million) and support to road development (US$ 144 million).
Treasury said during the second half of 2022, expected SDR disbursements of US$ 145 million will go towards investment in social sectors (US$45 million), agriculture support (US$ 50 million), industry support (US$ 30 million) and infrastructure development (US$20 million).
Another drawdown of US$ 155 million will be made towards acquisition of fertilizers and support productive social protection programs. This implies a total drawdown of US$ 300 million in the second half of 2022.
In August last year, Zimbabwe received its allocation of Special Drawing Rights (SDR) from the International Monetary Fund (IMF) amounting to US$ 958 million.
Due to additional arrears to the World Bank, the African Development Bank, the European Investment Bank, and bilateral creditors, which the IMF claims must be resolved before it can lend to Zimbabwe, the nation still is not eligible to receive concessionary loans from the multilateral financial institution.