US embassy cable - 05HARARE261

C O N F I D E N T I A L HARARE 000261 
 
SIPDIS 
 
C O R R E C T E D  C O P Y - RECLASS PARA 1,2 AND ADDEES 
 
STATE FOR AF/S 
USDOC FOR ROBERT TELCHIN 
TREASURY FOR OREN WYCHE-SHAW 
PASS USTR FLORIZELLE LISER 
STATE PASS USAID FOR MARJORIE COPSON 
 
E.O. 12958: DECL: 12/13/2014 
TAGS: EFIN, ETRD, PGOV, ECON, EINV, ZI, Economic Situation 
SUBJECT: GOZ PORTRAYS IMF DECISION AS "REPRIEVE" 
 
Classified By: Classified by Ambassador Christopher Dell 
under Section 1.4 e/g 
 
1. (U) In its lead story on February 18, the GOZ,s daily 
Herald newspaper characterized the International Monetary 
Fund (IMF),s postponement of a decision on Zimbabwe,s 
compulsory withdrawal as "reflect(ing) a vote of confidence 
in the country,s home-grown economic turnaround efforts." 
The Herald quoted Reserve Bank Governor Gideon Gono,s as 
stating that "we are obviously happy with the outcome." 
 
2. (U) The Herald recalled that Zimbabwe had increased its 
arrears payments to the Fund during 2004, reaching US$ 5 
million in the last quarter.  The article asserted further 
that relations between Zimbabwe and the IMF had "thawed over 
the past year," citing IMF Africa Director Abdoulaye 
Bio-Tchane,s visit to Zimbabwe in November "as a step 
forward in mending relations."  The Herald story did not name 
the U.S., U.K. and Canada as opponents of the extension. 
 
3. (C) Comment:  The GOZ has seized upon the "economic 
turnaround" as a plank in its parliamentary election 
campaign.  In that regard, the IMF decision plays into their 
hands. 
DELL