Secretary to the Treasury Fredson Yamba
Secretary to the Treasury Fredson Yamba

Secretary to the Treasury Fredson Yamba says it is inevitable that Zambia should get a bail out from the International Monetary Fund.

Sources at the Ministry of Finance have revealed that the PF Government has approached the IMF seeking up to US$1 billion bailout.

At the recently held World Bank/IMF Springs Meetings, IMF Africa Director Antoinette Sayeh revealed that the proposal for an IMF programme by the Zambian Government will only be considered after the August elections.

But in a statement, Mr Yamba said “in the meantime, Government will work towards setting the stage for the necessary adjustments in electricity tariffs and fuel pump prices, while ensuring that austerity measures announced by President Lungu in November 2015 are diligently enforced.”

“With respect to Zambia going on an IMF programme, the Government is fully resolved, and as directed by Cabinet, this is inevitable.”

Mr Yamba said the austerity measures have started bearing fruit as seen in the enhanced borrowing discipline that ensures we remain within budget in our quest to finance the deficit.

He said further, the appreciation of the exchange rate attests to not only the positive impact of the measures taken by the central bank but also the fiscal consolidation measures taken by the central government.

He said at the Spring Meetings in Washington, USA, the Zambian Government and the IMF agreed to have some milestones that will eventually lead to the country getting on a programme by the fourth quarter of 2016.

“In line with the roadmap, the IMF will be provided with Zambia’s macro and fiscal plans for the 2017 Budget and the medium term, in June 2016 in line with the national budget calendar,” he said.

Mr Yamba said this is meant to pave way for their input so that once in place, the programme will not be at variance with the budget because a large portion of the programme is executed through budget implementation.

“Further, the Fund will field a mission in September 2016 to finalize budget numbers with Zambia taking into full account the adjustments that will be required for a programme. This will be followed by programme discussions in October/November 2016 with a view to have Board discussions around mid-December 2016.”

He said one key policy issue to accelerate in the coming weeks will be the tabling before Parliament, proposals on the Mineral Royalty Tax (MRT) Sliding Scale.

Mr Yamba said this is meant to have a tax regime that is responsive to changes in metal export prices.

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68 COMMENTS

  1. Let us also make sure we set aside some money to bail out Dr Canicius Banda who’s been ledt to fend for himself by so called rich people.

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    • Now let us here those that claimed Moody’s downgrade was instigated by UPND. What HH has consistently said is that PF has no capacity to run an economy. Edgar is blank on economic matters. HH has a plan and should be an easy choice in August

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    • Mr. Kudos I know you are a staunch government supporter but even you have to see that you have destroyed all the good work done by MMD. We are like back to square one. You found very little debt but in your haste to impress the illiterate masses you went on a borrowing spree. Now you are broke and back in the arms of the IMF.

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    • The level we have gotten to, we will still need IMF even under HH. Difference is the programme will be better managed under HH than this visionless drunk.
      #chagwamustfall

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    • SERIOUSLY AND DESTRUCTIVE CONSEQUENCES OF HAVING A VISION-LESS SITTING STATE PRESIDENT. THIS IS VERY SERIOUS LADIES AND GENTLEMEN. ZAMBIA IS UNDER FIRE FOR AS LONG AS WE REMAIN WITH EDGAR LUNGU AS PRESIDENT OF OUR COUNTRY. IF EDGAR CHAGWA LUNGU REMAINS AS PRESIDENT OF ZAMBIA EVEN AFTER AUGUST 11, THEN ZAMBIA WILL BE COMPLETELY DOOMED. WE SERIOUSLY NEED CHANGE OF GOVERNMENT HERE. HH AND UPND TEAM CAN DO A FAR MUCH BETTER JOB FOR ZAMBIA. LET US GIVE HH THE MANDATE TO RUN THE AFFAIRS OF ZAMBIA.

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    • Off course inevitable and will remain like that with ma bail out as long as PF is in power. They only know how to eat not produce. Look at how they have become rich while the state and the masses have become poor.

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    • Kudos you are truly a shallow and small minded person. You have got an IQ of a small. It is not all the time that you have to keep vommiting rubbish. For once be serious if you have nothing to better you keep your foul mouth shut.
      Your PF morons led by by the spineless Lungu have just realized that they have got nowhere to go but agree to what ever conditions imposed by the IMF. Vision less and complete failures. They have been exposed.

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    • Canicius was warned in time and many times to keep away from hardcore tribalis, it is his fault he fell for lollypop, let him have diabetes.

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    • Even if PF was to win, it will not be easy for Government to get help from the IMF. The current government lacks moral and institutional capacity to manage resources, this is IMF`s position. How can a government use IMF money on allowances and wages for government officials?

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    • PF has created a bad record, a bad legacy, one bound to haunt us for a long time to come, more especially if they remain in power. Borrowing is not going to come easy. Confidence has been tempered with, if not destroyed. PF are not ones known to listen with their ears, nor to see with own eyes. They move purely by hunch; their whelping appetite for “helpings” having tended to make things worse, far worse. Help us whoever, please help. We are in trouble.

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    • CHAGWA LIKE THE COWARD HE IS , LEAVES IT TO HIS SIDE KICKS TO ANNOUNCE “BAD NEWS”, not even his DINOSAUR MIN OF FINANCE has the GUTS or BA.LLS TO ANNOUNCE THIS BAD NEWS!!
      EFFECTIVELY THIS PamaFI Govt have ACCEPTED THAT THEY HAVE RUINED THE ECONOMY, or as we say in bemba, “na ba kasa banya economy na mafi yabo!!”

      Vote wisely 11/8/2016!! Vote zambia forward!! Vote UPND!!

      PamaFI Kuyabebele!! #chagwamustfall 11/8/2016

      I thank you!!

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    • Mr. Kudos, you too as a Zambian needs more bail out by the so called humble people. Dr. Banda is a man who must fend and provide from his salary. You as a Zambian owe debtors because of someone’s irresponsible but humble borrowing. Right now, we are all suffering the effects. Remove the log in your eye first!

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    • # kumbafu or kudot And some for sending bano.ko abroad for mental check up because no normal woman can give birth to such a disguised brain of yours.

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    • IMF has a very bad reputation with regard to their working relationship with developing nations. Their strict and unfriendly conditions, mostly, gets in the way of development, and sometimes leads directly to terrible devastation of nations’ economies. And now Zambia going to them with a begging bowl, is a sign of incompetence on the part of the leadership, who don’t seem to have a clue on how to raise money any other way. There’s nothing special or hard about borrowing money from IMF. Anyone can do it. So it doesn’t prove that the leadership is really really working hard. In fact it proves the exact opposite. And worse still, part of the money may end up in a few people’s pockets, and it’s us the ordinary Zambian people who will have to bear the brunt of repaying the…

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  2. I never thought zambia would go back begging to the IMF. Soldiers patrolling the streets, mealie meal shortages etc. PF in just 5 years has destroyed the economy and yet they want another term, God help us. This is not the zambia I dreamed of after HIPC and hard fought debt cancellation. PF must GO come August 11 before we have a civil war. Enough is enough.

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    • I am equally disappointed on the 5 years of loans, debt, mealie meal shortages, smuggling, price controls, kwacha fall and now IMF!

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    • It wasn’t too long ago when, miraculously, we got pulled out of that ditch. It’s rather too soon for us to jump back therein. I guess, that’s where we belong. Let’s accept to live with the consequences. Yes, we got the money, a good amount of it. But what did we do with it? How embarrassing?

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  3. PF namufilwa just accept.We need wise men of the caliber of late mwanawasa and magande to sort out this economic crisis.If Zambians make a mistake on augast 11 of voting for Lungu,this country will be worse than Zimbabwe 6yrs ago.we shall be queuing even for water.loadsheding will a normal ocurance.very jobs and many job loses,hunger and malnutrition will common.We need HH to over practical solutions to this economy.The man has demonstrated that he can sustain a political party as big as UPND for almost ten yrs without getting broke.The late By tried but died a poor man.We need HH yes we need him.Augast 11 its Akuna kulala.

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  4. This would have been in effect as we speak. But as usual, we are being sacrificed for political mileage to get Lungu back officer after August elections. How and why did we find ourselves at the back of the line when we were doing so well less than 5 years ago.

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  5. Fellow Zambians come Augast 12 its ‘AKUNA KUTINA -AKUNA KULALA’ PAKAFYE LITENTE LITULIKE.HH A POLOGILAMU.

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  6. The exchange rate is not due to intervention by PF. Actually in less than a week the kwacha has started losing value and is projected to lose more.

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  7. Too bad the first comment on this very serious matter is from a confirmed !diot. So am guessing fuel and electricity tarrifs are shooting up soon while the kwacha begins its downward spiral?

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    • Yes indeed, the first comment on so serious a subject being made by a despicable rascal.

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  8. I told a friend of mine five years ago that please don’t for PF they are clueless, he laughed at me and said I was MMD. Five years down the road I am still advising people not to vote for PF. My friend has moved from PF to UPND now. The lesson here is that don’t be a cadre and behave like you have never been to school whereby slogans like more money in your pockets, lower taxes, donchi-kubeba convince you to vote for chaps that go on a borrowing spree without knowing how they are going to pay back the money. NB. Please don’t vote for MMD also they are in a state on confusion.

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  9. The debate has always been and will continue to remain, who between Edgar and HH is best suited/experienced to handle the economic realities facing our country? Nothing to do with tribe, humilty, clothing, dancing style, etc

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    • This is just a fantasy. People are clued up on the people who would con us into a false security. Our eyes and ears have witnessed the fork tongued speak smoothly then turn around with abuse when we challenge legitimately.

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    • Right now we have no security and no hope of even false security from the clueless !diots called PF. You cannot even swallow your pride apa and would rather look foolish as always by failing to give an objective comment about the return of the IMF and the implications that come with that return.

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  10. Only the Devil and His Children are not conducive to The Good News as Christ found!

    We have hope and a light in the not too distant future. Rejoice, for we shall not perish!

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    • Dude, give it up. Now you just sound !diotic. Not that that’s anything new. You are failing to defend this nonsense and you opt to be Christian. You people are confirmed failures and the IMF is here to back me up on this. Failures!

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    • It`s that kind of delusional thinking that has gotten Zambia where it is. God has given you brains to make wise choices for national leaders but choose to be dumb. And when things start to bite you say lets pray.

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  11. Writings are already on the wall PF die hards watch out we are moving towards dark days. I cry for mother Zambia the mess we have put ourselves in.

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  12. IMF knows if given $1billion PF would promptly spend it all on purchasing votes from one track minded voters.

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  13. These Batch of SATA’s relatives have caused too much damage to zambia with their incompetence: chikwanda is a unip lyric, who promised he would not continue this year as minister of finance but has not. ECL or HH needs to arrest the whole lot WHEN they become presidents on 11TH August – though i have doubts whether ECL WILL take them to TASK for messing up the economy like THIS

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  14. @Mwebantu a.k.a Douglous syakalima is it not the same illitrate masses you are seeking votes from? Please moderate your language if you realy want the so called illitrate masses to vote for your party otherwise you will rot in oppsition.

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  15. @Stupid Kudos & Patriot Within PF-Yes only you in PF are not perishing but guess what?You will be held accountable of all the corruptions & lootings of our finite resources!You stole the monies,& contracted loans using poor Zambians as collateral without remorse,surely you are Devil & pathetic.You even still want to continue presiding over our welfare without shame.You will see after August,we will institute a task force only for your diabolical deals & mismanagements!

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  16. FTJ and his TEAM need to be honored for having delivered-Chikwanda and his TEAM is a disaster.these guys should be thoroughly investigated on hidden loot in offshore accounts – PANAMA PAPERS.

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  17. But in a statement, Mr Yamba said “in the meantime, Government will work towards setting the stage for the necessary adjustments in electricity tariffs and fuel pump prices, while ensuring that austerity measures announced by President Lungu in November 2015 are diligently enforced.”

    In other words, after inflating thecurrency in a defacto currency devaluation because of taking on billions of dollars of eurobond debt, they want to take money out of social services and cost of living support.

    How predictable. Just like what is going to follow.

    There are going to be many more riots, or as the former Chief World Bank Econmist Joseph Stiglitz called them, the IMF Riots.

    The individuals who hijacked the PF have destroyed the country. They have destroyed the…

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    • The individuals who hijacked the PF have destroyed the country. They have destroyed the ability of future governments to implement policies, because of debt, and IMF conditionalities.

      This all started when they refused to implement the Windfall Tax. Instead of that, they went to London to get Eurobond debt, instead of taxing the mines. Considering the collusion between the IMF, De Beers, the Rothschild Bank (which invented the Eurobonds and Privatisation, founded De Beers and owns Rio Tinto), it is obvious who is behind the ‘don’t tax the mines’ movement.

      Time for Chikwanda, Lungu, Banda and all to go to jail.

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  18. PF may have failed but which party is the alternative because UPND is also now filled with pf defectors? A former vice president, cabinet ministers and deputy ministers who contracted euro bonds have now regrouped in upnd. Pathetic

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  19. Imwe Ba Mr K was Sata any better? the man was ruling by decree, he brought about projects that were not budgeted for hence the situation we are facing now.I pleaded with friends not to give Sata a chance alas people were excited about having more money in the pocket. The reality is people have “no money in the pocket” I get irritated when they pour out their desperate situation to me I’ve openly told them to go the PF office for help. My weakness is that I feel for their hungry children and I end up bailing them out. I can’t even buy the cheap dollar on the market because I’m overwhelmed by people who need help.So fellow Zambians brace your self for more hardship if you bring back Edgar and the clueless team

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  20. The question is how did we find ourselves in this messy? The buggers who took over power in 2011 were id.iots and now compounded by visionless head. With these quacks in charge. no IMF programme will succeed and Zambia is on its way to the abyss. Sorry bane prepare yourselves for harder than ever before suffering. I cant imagine what will be of Zambia after August 2016 if these cockroaches are re-elected such as electricity charges doubled, water bills doubled, fuel prices doubled, mealie meal prices doubled, salaries frozen, Public service recruitment frozen, ZESCO privatized, Zamtel private and aboce all retrenchments will be order of the day. Brace yourselves for IMF beater pill.

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  21. Before the IMF programme is accepted we need to have a forensic audit to determine where the loans contracted by PF have gone. I am sure after this exercise, we won’t need the IMF, we shall know who the culprits are and they will have to pay back accordingly. It is criminal to subject ordinary Zambia to austerity measures again, when we had one barely ten years ago. Even the people who do not have eyes should now see that Lungu is a misallocated resource and should never have been president in the first place.

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  22. After mwakolopa ati bailout is inevitable first we need to do stock take on the previous euro bonds where the money was spent on IMF dont bail them out until we knw were each coin was spent on

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  23. The worst mistake we made was to allow RB to be president after Mwanawasa. We needed a visionary like the General after Mwanawasa. This is Zambia so you know what happened next.

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  24. You now need the IMF but with careful negotiated With this IMF programme being concluded ,Zambia Still Has The Potential To Issue Investments Grades security instruments and Bonds At A Lower Spreads Zambia is Still a Sizeable Economy With quality GDP Per Capital and Stronger Macroeconomic Fundaments supported Government Effectiveness
    The IMF Programmes Gives You Market Access In A Global Volatile Market Participation In The IMF Programme gives you the credibility in the times of markets volatility to restructure refinance and also to roll and Catalyse On Private Capital Flows
    The Gov Has Performed Well Since 2012,with little FDIs except From…

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  25. The 3 billion dollars Bond Issuances as you can analyse from the DEBT PORTIFOLIO The grants And Official Lending has been Little If Not Insignificant Most of the it has been Chinese Lead To Propel Infrastructural Developments And Consumption commercial bank borrowing has also been relatively minor
    All This at the Slap of Copper Prices
    You will need now the IMF programme if you will have to continue laying the foundation on which the Broader Economic Rebound will stand and actualize the Private Investments given the low level of Donor Funding For Capital Projects and consumption ,you definitely need the IMF programme carefully negotiated not like morocco

    Though at…

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  26. the issuance ,it was well understood that the euro bond proceeds would be for Public Investments In Projects Specifically Transport And Energy ,Public Consumption Has Been Evident Against The Revenue Marginally Increasing Resulting In Stress Arising From Increased Deficit As A Result Public Savings Has Been Marginally Smaller Debt Sustainability Could Have Been A Little More Manageable Simply review the National Accounts since 2012 to date and you will see with about 30 to 45% being public consumption
    From The Issued total Euro Bonds Of 3 Billion USD Its Appears Recurrent Expenditure Has Taken More That Capital Spending But Overall The Restructure And…

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  27. And Balancing Of Cash Flows Has Been Exciting With Creativity To See And Follow Amid Very Tight Budget Lines
    There Are Also Cases Where Bond Issues Have Contributed To Public Expenditure For Consumption Nature With Little Savings But At The Same Time Increased Infrastructural Spend It Appears That That Is The Case For Zambia On Its Accounts And Hence Gov Sensitives To Changes In Reserves And The Public Debt-To-GDP Ratio In Its Austerity Programmes to restructure and maintain macro prudential stance 2016 towards the horizons

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  28. within the planning and fiscal periods there has been little savings and revenue measures like those good initiatives in tolling one only hopes that the IMF only acts like a catalyst to once again realign and actualise to crystallise private investments even in the not so bad global growth for those countries that will emerge and not sub merge and Zambia should be that exception

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  29. @Jonathanmhango Financial and Investments Analyst
    The point is, we don’t appear to have our act together. PF came into power without an economic agenda. We are where we are today, not by accident. We brought ourselves here. We ought to have known better. Zambia’s once vibrant manufacturing sector is now but a shadow of its former self. Foreign made goods are what greet one’s eyes in every shop and market stand. If PF had vision, this is one are, along with agriculture, tourism etc., they should have focused on. But what have they done, if not to invent new and more creative ways of chewing the money they borrowed? Should we expect them to do any better if IMF were to pour more money on their laps? Or could it be we simply don’t have the eyes to see what these chaps have been doing?

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  30. Hehehe kikikiki bail out, bail out, every time. yaba! These numskuls are destroyed the economy.

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  31. This is the most useless government in the history of our planet. Completely clueless bunch of masqueraders!

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  32. This is the best news I have received all year…lol…the baby that Fleddie the wanna be scribe and lawyer former accounts clerk nutured with Fat Desk Lawyer and defunct dpp…’our Micheal’ has been delivered on his within 90 days slogan and donchie kubeba….as civil servants we fought such regimes for years but failed..it took us to ascend to HIPIC i.e Debt forgiveness to get out of the IMF choke hold…please its better to be bust then to try and access the 1 billion you are trying to get…and please IMF DONT release the money unless the right people are in office..proper Sec to Treasury(not suspect), Finance and BOZ leadership…make it a governance issue…otherwise the money will be looted…

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  33. My point is what is leis ahead for the future That appears the only option from many options available with yields on the higher side with the second and subscription being critical this form of funding amongst others should be explored

    IMF initiatives like this helped to clean up and restructure to refinance and ensure some cover in the short term with those industrial sectorial activation in focus

    But it does not come cheaply but it might be the most effective to address the financial and macro challenges in the short to medium term

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  34. rather with third subscription most unlikely at those yields and appetiser in the secondary markets for liquidity The spreads could be prohibited with book running or book building less exciting
    With the low incomes in weaker global conditions and prices of commodities exhibiting that downward trend ,if you issue a 3 rd. Bond you will surely be paying higher yields like Mvunga mentioned there If your sinking fund fails in total or part as incomes become under pressure you still have other funding methods to navigate the 3 Billion It’s not a Forgone conclusion and its not as through locked into that position confirmed to hell

    I end here////////////////////

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