Zimbabwe's economic situation 'very difficult': IMF official

JOHANNESBURG: Zimbabwe`s economic situation remains "very difficult" as sustainable growth is threatened by high government spending, an untenable foreign exchange regime and inadequate reforms, a senior International Monetary Fund (IMF) official said.

"Immediate action is critical to reduce the deficit to a sustainable level, accelerate structural reforms, and re-engage with the international community to access much needed financial support," Gene Leon, IMF`s mission chief for Zimbabwe said in a statement to Reuters late on Wednesday.

Zimbabwe has not been able to borrow from international lenders since 1999 when it started defaulting on its debt.