ZIMBABWE BANKING CORP URGES POLICY REFORM
A range of substantial policy
initiatives need to be implemented to shift resources from
consumption to production in the Zimbabwe economy, says the
Zimbabwe Banking Corporation (ZBC) in its quarterly economic
review.
    The state owned banking group says although Zimbabwe's
balance of payments improved significantly last year the
underlying position deteriorated. Last year's improved trade
surplus was partly the result of sales of stockpiled gold and
continued import restraint.
    It says debt service charges are projected to exceed 35 pct
of exports in 1987 and warns against squeezing imports further.
    ZBC says mining industry import quotas for the first six
months of 1987 have been halved and those for manufacturing
industry cut by a third.
    It contrasts the performance of manufacturing industry in
1967 to 1974, with that since independence in 1980. Industrial
production almost doubled between 1967 and 1974, when foreign
currency allocations almost trebled in real terms.
    Since 1980, import allocations have been cut 45 pct and the
Zimbabwe dollar has depreciated by more than 60 pct. As a
result the bank says the external purchasing power of foreign
currency allocations is currently only 20 pct of its 1980
levels.
 REUTER
