Zambia is still interested in an IMF bailout-Government

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Government says a team from the International Monetary Fund will be visiting Zambia before the end of this month for discussions towards the design of a home-grown but IMF supported economic stabilization program.

The Ministry of Finance Minister has since refuted reports circulating on social media that President Edgar Lungu has u-turned on his commitment to an IMF programme because of tough conditions.

“The Ministry of Finance takes this opportunity to express concern at the tendency by some public service officials and in some alleged cases, central bank officials, to distort facts and circulate them to the media with unfettered impunity,” a statement issued by Ministry Spokesman Chileshe Kandeta said.

He said the IMF will be provided with home-grown macro and fiscal aspirations for the next annual budget and the medium term in order to pave way for program discussions so that once in place, the Fund supported program will not be at variance with the budget and the medium term expenditure framework.

Mr Kandeta said, “The trending circulation on social media about the constituent components of an IMF supported program for Zambia should be ignored with the contempt it deserves as neither the Zambian government nor the IMF announces decisions through unidentifiable sources.”

He said the Ministry of Finance is hopeful that as stakeholders are being consulted in developing an economic recovery program, the seventh national development plan and the Fund supported economic stabilization program, public service workers must demonstrate – without exception – their full commitment and support for the government of the day.

“It is our belief at the Treasury that all public service workers have a duty to render their unconditional support to the government of the day in order to protect the sovereign dignity of the country and facilitate the timely, efficient and effective implementation of social-economic policies,” he said.

Meanwhile, Finance Minister Felix Mutati is today scheduled to arrive in Washington DC for the 2016 Annual Meetings of the IMF and The World Bank.

Mr. Mutati is expected to hold consultative meetings with the Office of the IMF Managing Director, World Bank Vice President, constituency and caucus sessions of the Bretton Woods Institutions, the USA Treasury, the representatives of multinational private sector organisations, international investors, global private sector organisations, high credit rated financial sector organisations and, the top leadership of the USA Millennium Challenge Corporation among others.

He is accompanied to Washington DC by Bank of Zambia Governor Dr. Denny Kalyalya, Ministry of Finance Permanent Secretary for Financial Management and Administration, Dr. Ronald Simwinga and other Senior Government and Bank of Zambia officials.

A team from the Fund visited Zambia in March to appreciate the country’s macroeconomic situation and commence engagement towards a formal program between Zambia and the IMF as directed by Cabinet.

Further, another round of engagement was initiated at the April 2016 Bretton Woods Institutions’ Spring Meetings in Washington DC whereby the Zambian Government and the IMF agreed on an engagement approach which would lead to the country getting on a program.

35 COMMENTS

  1. +7
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    Dinning with the devil..Do you expect to be satisfied? At this point IMF is our only way out..No options.

    • +9
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      Zambia still interested in IMF loan? Now there is a surprise!

      Financially illiterate misleaders whose only vision of national fiscal management is to go to loan sharks !!

      I look forward to seeing how many Zambians will be dancing “Dununa reverse” in June 2017 !!

    • +6
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      Hey failed and visionless leadership of Edgar’s PF, its not that you’re interested in the IMF bailout package, whether you like it or not, the IMF austerity measures will imposed. IMF is already on the throats of PF’s Zesco and some mines as a service of non payment of PF debt. The Euro bond ($700million) too needs to be paid back by the incompetent PF including 30 other PF debt. Last year going to USA Lungu spent $300,000 and this time is $500,000 carrying PF cadres to the UN meeting.
      Pay back PF, IMF is here to get what belongs to them $$$ in billions.

    • +3
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      Why is PF embarrassing itself by going to IMF with a ‘begging bowl’ when they can easily ‘rig the economy’ by
      printing more money (Kwacha) or even ‘Dollars’ at Govt Printers & then they shall continue to build more:
      a) roads
      b) schools
      c) hospitals
      d) and even buy more chibuku beer & distribute more kwacha to cadres

      By so doing they’ll need not beat up people to remain in power. They’ll simply become more popular.

      No more unplanned declarations of “there be a new district and it was born”.

      Or could it be time for reality check now? Political snobbery has short life!

      Time to wake up PF & work like Levy & RB did to keep economy afloat!

  2. +4
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    Lungu still wants an IMF bailout and in the meantime he has not only denied the Petetioners their rights to be heard but he has arrested them on tramped up charges. The IMF and Donor Aid Agencies should sanction this illegitimate Lungu Regime and set stringent conditions for any financial assistance. Lungu must be forced to dispose off the Petetion and stop harassing the Petetioners and Zambians as a whole. Lungu should just be slapped with travel restrictions,economic and financial sanctions until he returns to legitimacy.

  3. +3
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    Chileshe Kandeta let IMF come to visit Zambia, allow them to discuss the economic stabilization program but don’t accept their proposal. Remember its the same IMF & World Bank that ordered the sale of all parastatal companies in Zambia as an economic stabilization program that would lead to Zambia developing into G20 or G8 whatever. But today Zambia finds herself in high unemployment situation, with lost income from the sold & liquidated companies & you don’t learn lessons. Problems are meant for us to think & find our own solutions not to run to IMF. When you are in trouble from the devil don’t run to the devil for solution otherwise will finish you off. This idea of always looking for loans & donations of which we have no plans for & take them as extra cash for our pockets, will not…

    • +4
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      Jesus…@true Zambian.. and do you think all the things of selling parastatal companies and high unemployment, high inflation, devaluation of ZMK, high cost of living, brought themselves to this country with no one responsible? You don’t care who is making borrowing decisions or overspending Govt money yet you miraculously expect the problems to solve themselves! Open you mind and think… IMF doesn’t want you.. Its us who Need them to help us manage our govt spending since the guys we have don’t know how to do it. you are calling the “muzungu” to help you manage your home cos you have failed. that’s the simple analogy of and IMF bailout deal sir. don’t be naïve.

    • vote

      This idea of always looking for loans & donations of which we have no plans for & take them as extra cash for our pockets, will not take us anywhere. Loans are meant to serve a special project but not as extra cash for spending. Problems come & go so don’t sell the country for temporal global problems. Go for home-grown program, but not IMF supported economic stabilization program. KK came up with pineaple, tiptop, kwench, drinks during his time & we were & still laughing at him not knowing that he was miles ahead of the world. The same cocacola company has today utilised his invention by producing fanta pineapple, Strawberry, Grape, Lemon Lift, Creaming Soda, Raspberry, lime, etc. South Africa even came out stronger from sanctions. Think before you shout for help.

    • vote

      This idea of always looking for loans & donations of which we have no plans for & take them as extra cash for our pockets, will not take us anywhere. Loans are meant to serve a special project but not as extra cash for spending. Problems come & go so don’t sell the country for temporal global problems. Go for home-grown program, but not IMF supported economic stabilization program. KK came up with pineaple, tiptop, kwench, drinks during his time & we were & still laughing at him not knowing that he was miles ahead of the world. The same cocacola company has today utilised his invention by producing fanta pineapple, Strawberry, Grape, Lemon Lift, Creaming Soda, Raspberry, lime, etc. South Africa even came out stronger from sanctions. Think before you shout for help.

  4. +1
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    IMF route is the best for Zambia Now In its quest to maintain growth PRIVATE sector BORROWING as opposed to supranational IMF funding will be NEGATIVE for growth for Zambia Another additional EURO BOND will also be ILL advised given the current scenarios and curves IN this DEBT classes RESTRUCTURING to prepay the current again with be NEGATIVE for GROWTH ZAMBIA

    If you read the IMF Global debt 2016 analysis and stress, Zambia is better off and has space to GROW the Economy if carefully manages Global debt stands at $152 trillion and it will be important to see similar emerging countries comparable to Zambia and package this IMF ZAMBIA…

  5. +4
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    LET IMF GIVE US,THE MONEY WILL GO STRAIGHT INTO SOMEONES POCKETS.WILL DRINK JAMESON…

  6. +1
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    With the World in $152 Trillion dollar debt, ZAMBIA still need to spend something to grow THE economy at least with minimum “COST OF CAPITAL” The IMF gives you the best option and return for now The OUTPUT or growth you have projected as head in parliament, the IMF package will at least help to GROW the ECONOMY to MEET your PAST obligation and still meet your obligations to grow to those desirable levels of growth IF CAREFULLY negotiated and Aligned to Zambia’s Fiscal
    Given this size of global debt particularly private exposed like Zambia, the size of the current debt levels will call for some huge private sector restructuring to avoid crisis on the already weak…

  7. +1
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    economies In short private sector debt including the EUROs will prove a costly alternative for Zambia and might not be as flexible as IMF alternative

    Given this space of IMF there is need to heighten performance reporting to ensure efficiency and return that supports the growth of the economy within the feasible IMF programme to ensure roll over with other commitments is minimised

  8. +1
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    When you look at this Fiscal Monitor report if I where you I will accept the IMF programme and try to GROW the Zambian economy
    I would then set Fiscal Policy report score card for Ministers of Finance , Governors and Commissioners of Tax to ensure revenue protection as well as expenditure efficiency spending and monitory
    Looking at the fiscal policy trends ,tax and expenditures in MOF reports against this IMF,I would emphasize growth of Revenues as collected by ZRA at least to more than 39% for the year 2016 to 2017 to stock for additional spending and meet the obligations within this short-term to long-term horizon
    Zambia should learn how to Fish and Cultivate…

  9. vote

    and make the economy work in a sustainable manner for long-term economic growth even within this IMF programme

  10. vote

    You see often times the problem has been with policy implementation in the intended and unintended objectives or consequences not often the FUNDING METHODS Weighing more on one side than the opposite to ensure a complete loop in the short run and long run

    Henry Hazlitt, Economics in One Lesson in his words said in 1946-
    ‘’The bad economist sees only what immediately strikes the eye; the good economist also looks beyond. The bad economist sees only the direct consequences of a proposed course; the good economist looks also at the longer and indirect consequences. The bad economist sees only what the effect of a given policy has been or will be on one particular group; the good economist inquires also what the effect of the policy will…

  11. vote

    be on all groups’’
    If you get the IMF funding make sure you activate make use of it to grow the economy and learn how to fish The IMF would want those it has given a life line to learn how to be sustainable to feed thy selves and teach others in similar categories how to be sustainable for a lifetime

  12. +2
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    All these economic problems we are facing were avoidable. The reckless PF regime continued borrowing for consumption without thinking of tomorrow and Kambwili would come on air and tell the gullible cadres that, the economic problem is “GLOBAL”, c!kala chawishi, and the gullible cadres would cheer wildly for the gorilla! Mutati has told us the truth. The problems wouldn’t if the PF leaders were responsible enough. He (Mutati) has said PF is 80% responsible the economic problems we have today and not what the tribalist Gorilla was lying to the people! One wonders why Edgar is not dying of his AIDS!

  13. vote

    Kasaba Lubwe Chinsanka Mbabala Pa Chishi Bangweulu Tatuta Growth is Important So Negotiable favourably with IMF Christina Largade and ensure We register some growth as Zambia

  14. +1
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    All these economic problems we are facing today were avoidable. The reckless PF regime continued borrowing for consumption without thinking of tomorrow and Kambwili would come on air and tell the gullible cadres that, the economic problems are “GLOBAL”, c!kala chawishi, and the gullible cadres would cheer wildly for the gorilla! Mutati has told us the truth. The economic problems wouldn’t have been there if the PF leaders were responsible enough. He (Mutati) has said PF is 80% responsible the economic problems we have today and not what the tribalist Gorilla was lying to the people! One wonders why Edgar is not dying of his AIDS!

  15. vote

    Yama Government debt is medium –term neutral and main stream theory accepts the debt neutrality
    In the short to medium term that is why monetary policy works side by side with fiscal You will have to plot the Zambia’s correlation of growth rates to debt accumulation and see how the outlook looks in the long-term since 1960 Flex it at 90% of Debt to GDP and see how the growth correlation will be
    Analyse and look at all episodes of mountains of debt accumulations in regions ,especially emerging see the growth rates also, relate to inflation rates rates and see some hope in measures Zambia is implementing
    Though you may see some structural changes to the…

  16. +1
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    Why is IMF coming on board now? and what has caused us to come to this stage.
    Brace yourselves for more trouble remember even today some goverment workers are not paid by this goverment.
    Shame PF you have destroyed our country.Did anyone get paid as a teacher before others because one is a Bemba or Ngoni

  17. vote

    Its the same IMF programs that helped mwanawasa ‘ s govt to stabilise the economy.
    Yes he was asked to sell zanaco, zisc, zambia railways, the 25% stake in kcm, go after chiluba’ s alleged corruption, wage and employment freeze for 2 yrs, retirement package payment halted.
    Yes we complained and called mwanawasa names.
    When the dust settled, and levy died we have become praise singers of mwanawasa ‘s presidency. Hypocritical uninformed social media vuvuzelas. Check your facts.

  18. +2
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    “IMF supported economic stabilization program” That’s nor really true. The IMF doesn’t stabilize economies. It imposes conditionalities that are intended to fold national economies into the globalised economy. That is why their conditionalities are the same whether they are talking to Zambia, Russia, Argentina, Cuba, China, etc.

    They have an agenda, and making the Zambian economy better is not on that agenda.

  19. +1
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    Ministry Spokesman CHILESHE KANDETA says that ‘public service workers have a duty to render their UNCONDITIONAL SUPPORT to the Government’. For those who read between the lines this chap is implying that one of the IMF conditions prohibits any salary increase. Regardless of salary freeze do not mourn not groan over hardships you will encounter like the North Koreans.

  20. +1
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    Do not be fooled IMF has not got Zambia’s interest at heart you have to see beyond it is about controlling you and not being at par with them. Muli bachifita when you accept money you must give in return and that is the catch. Maybe let us strike better deals with China not kaloba

  21. +1
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    Please IMF don’t give pf kaponya government any money they will just steel that money like they stole our votes!!!

  22. vote

    Which votes please speak for yourself because they did not steal mine.And if IMFthink Zambia is HH let them keep their money because it will only prove to the people of Zambia that they support violence.This is someone who called people to rise up and fight his cause this is lawlessness.Try this in the west and see if you will last one second.I do not know what he agreed to give his financiers in return for winning but whatever it is it is coming at a price.

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