UPDATE 1-IMF restores Zimbabwes choosing by casting votes rights after 7 years

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WASHINGTON, Feb 19 (Reuters) - International Monetary Fundmember countries on Friday restored Zimbabwe"s voting rightsafter a seven-year suspension but said it could not have accessto IMF funds until it had paid off $1.3 billion in arrears.

While the move is more symbolic, it is also a step by theinternational community to recognize progress so far byZimbabwe"s new unity government to mend the economy andnormalize relations with donors.

"The board decided today to restore Zimbabwe"s voting andrelated rights, and its eligibility to use resources from theIMF"s General Resources Account, following a request fromZimbabwe"s Finance Minister Tendai Biti," the IMF said in astatement.

But the IMF said Zimbabwe would not be able to tap IMFfunds until it had fully settled its arrears to officialcreditors including the IMF, World Bank and African Developmentbank.

"Access to IMF lending resources is also subject to IMFpolicies on the use of such resources, including a track recordof sound policies and the resolution of arrears to officialcreditors, which would require donor support," the Fund added.

The IMF suspended Zimbabwe"s voting rights in 2003 overpolicy differences with the previous government of PresidentRobert Mugabe. Western donors withdraw crucial funding forZimbabwe and blamed Mugabe"s land reform policies andmismanagement for the collapse in the once prosperous economy.

Since then, Mugabe has formed a unity government withformer opposition leader Morgan Tsvangirai, who is now primeminister. The IMF has said there are signs that the economy isstarting to recover due to improved policies.

(Reporting by Lesley Wroughton, Editing by Chizu Nomiyama)

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