Zimbabwe has reached an agreement for a staff-monitored programme (SMP) with the International Monetary Fund, marking an initial step toward closer engagement and a potential future loan programme.

The 10-month SMP is expected to start next month, George Guvamatanga, a senior official at Zimbabwe’s Finance Ministry, told Reuters, adding that the timeline depends on the completion of all necessary procedures.

“The programme is to consolidate current fiscal and monetary policy reforms,” Guvamatanga said.

IMF mission chief Wojciech Maliszewski said the SMP does not involve financial assistance or endorsement by the Fund’s Executive Board. In a statement, he said the programme is aimed at “establishing a credible track record that supports the authorities’ re-engagement efforts and complements their broader strategy toward arrears clearance and debt restructuring, including eventual access to external concessional financing.”

A staff-monitored programme is an informal agreement between the IMF and a member country. It can help restart programmes that have gone off track, enable repeat access to emergency assistance, or open the door to financial support from the Fund.