WASHINGTON, Dec 13 (AFP) - The IMF on Wednesday voiced "deep concern" about economic and social conditions in Zimbabwe and called for urgent measures to prevent a deepening in what it described as an economic crisis.

International Monetary Fund executive directors, according to a summary of their recent examination of Zimbabwe, painted a bleak picture of the economy, which they said could be harmed by the government's land reform policy.

The IMF found that a bid by authorities to restore macroeconomic stability in 1998 and 1999 foundered on expenditure overruns on wages and defense.

The situation, aggravated by political tensions, has worsened this year, with the economy expected to contract by 5.5 percent after negative growth of 0.2 percent in 1999, according to the Fund.

IMF directors, according to the account released Wednesday, "expressed deep concern about the decline in per capita income and the deterioration in social conditions of the past several years as a result of Zimbabwe's weak macroeconomic policies, the rapid spread of HIV/AIDS, poor governance and escalating tension and uncertainty related to the government's land program."

Under a program pursued by President Robert Mugabe aimed at redressing colonial-era injustices, the government is re-settling white-owned farms with black farmers and veterans of the country's struggle for majority rule.

Five white Zimbabweans have been killed since February in land reform confrontations as hundreds of white-owned farms have been invaded by veterans.

The country's supreme court has declared the land reform drive unconstitutional but the ruling has had no effect on government actions.

The IMF in its analysis expressed "considerable concern about the impact on Zimbabwe's economy of the government's policy on land reform," notably an erosion in support from foreign creditors.

Directors said it was critical "to conduct the process in a lawful manner and to dispel uncertainties that could entail further large output and employment losses."

They called for "urgent corrective measures," including an orderly and transparent approach to land re-distribution, normalization of relations with foreign creditors, reductions in wage and defense outlays and increased spending to combat HIV/AIDS.

Monetary policy should be tightened until inflation, projected to hit 85.9 percent this year, is brought under control, according to the IMF.

"Rebuilding investor confidence will require determined efforts to improve the economic environment, including by taking decisive steps to strengthen governance and ensure a speedy return to the rule of law," IMF directors said.

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