Zimbabwe : Staff Report for the 2016 Article IV Consultation and the Third Review of the Staff-Monitored Program-Press Release; Staff Report; and Statement by the Executive Director for Zimbabwe

Context. The authorities met all their commitments under the Staff–Monitored Program (SMP), despite economic and financial difficulties. Inadequate external inflows, lower commodity prices, the dollar appreciation, and the El-Niño-induced drought hurt economic activity. The authorities have started to rationalize civil service by exploiting opportunities for cost savings, amended the Public Financial Management and Procurement Acts for Parliament and Cabinet approval, respectively, and rid the financial sector of problem banks and reduced non-performing loans. They garnered broad support for their reengagement strategy from creditors and development partners, in particular their plans to clear arrears to the International Financial Institutions.