GOZ PORTRAYS IMF DECISION AS "REPRIEVE"

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 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