Zimbabwe is facing severe economic problems and food shortages

The payment came after IMF officials made an assessment visit to Zimbabwe.

The country still owes the fund $120m. Its economy has been beset by rampant inflation and chronic unemployment.

In September, the IMF postponed a decision on expulsion until March after Harare repaid $131m and pledged to eliminate its debts by November 2006.

"Zimbabwe today made a further payment of $9 million to the International Monetary Fund, thereby fully settling its remaining overdue financial obligations to the General Resources Account (GRA)," the IMF said in a statement issued late on Wednesday.

"Accordingly, the managing director withdrew his complaint today, thereby cancelling the procedure for compulsory withdrawal," the statement said.

If Zimbabwe had been expelled from the fund it would have been the first such expulsion since Czechoslovakia was expelled in 1954.

The IMF warned last year that conditions in Zimbabwe could get worse unless the government took urgent action to stabilise the economy and to provide food to vulnerable groups.

Zimbabwe has issued new bank notes worth Z$50,000 (52 US cents) to help cut the number of notes needed for standard transactions.

The Z$20,000 bill - previously the largest denomination in circulation - can now buy only half a loaf of bread.