Harare - Zimbabwe will ask international donors to show "sensitivity and support" and reschedule its debt, the head of the country's central bank said on Thursday as he unveiled what he claimed was a prescription for the crisis-ridden economy.
In a speech that lasted nearly two hours, Gideon Gono, the governor of the Reserve Bank of Zimbabwe (RBZ) presented what he termed a "home-grown road map" to fight inflation and stabilise the country's exchange rate.
Zimbabwe is currently in the throes of its worst economic crisis since independence from Britain in 1980, with 70 percent unemployment and inflation at around 620 percent.
The recently appointed banking chief, a close ally of Zimbabwean President Robert Mugabe, said the central bank would be seeking international support from donors.
"We will be talking to whoever we owe some money, and that includes the IMF (International Monetary Fund) and the World Bank," said Gono.
In turn the country would be appealing for "sensitivity and understanding" from the donor community, including a rescheduling of the country's debts.
The statement comes barely two weeks after the IMF said it was moving to expel Zimbabwe, citing a lack of cooperation and arrears of more than $270-million (about R1,62-billion) running back almost three years.
Gono did not announce a devaluation of the Zimbabwe dollar, which economists consider to be grossly overvalued at the official rate of Z$824 to the US dollar.
However, the reserve bank governor said exporters would be allowed to trade some of their foreign currency earnings on an auction system, which would give them a higher rate.
Gono said that his monetary policy envisaged reducing inflation to below 200 percent by December 2004.
He said to curb illegal foreign currency transactions, the central bank would set up a "whistle blowing fund to pay for quality information" on irregular dealings.
The fund, which will be open to individuals and companies, will see payments being made in hard currency for information, Gono said. - Sapa-AFP