The International Monetary Fund said Zimbabwe’s economy may be recovering after a decade of recession.

“A nascent economic recovery appears to be underway,” Vitaliy Kramarenko, the IMF Mission Chief for Zimbabwe, said in a statement. “To sustain positive economic trends and improve living standards, reform and stabilization efforts need to be stepped up.”

However the International Monetary Fund has told Zimbabwe that it will not provide the country with more funds until its existing $1bn debts are settled.

Zimbabwe's government estimates it will need $10bn (£6bn) of foreign aid to help rebuild its battered economy.

But the IMF said that Zimbabwe would need to clear its debts and show a sustained record of sound policies before it could give financing.