Zambia says it expects to agree a deal with the International Monetary Fund in the first half of this year.
Finance Minister Felix Mutati also told Reuters the country was unlikely to return to international bond markets before 2018.
Last March, Zambia began talks with the IMF about a potential loan package after agreeing that its budget deficit was not sustainable, though formal talks have not yet been launched.
“We have a roadmap – stakeholder consultation including cabinet approval – and we hope that the deal can be consummated in the first half of the year,” Mutati said in an interview on the sidelines of investor meetings organised by the Business Council for Africa.
He said it was too early to put a precise number on how much Zambia was hoping to borrow from the IMF.
Members of his delegation said it was expected to come in the form of an Extended Credit Facility (ECF), a programme which normally runs three years. Analysts reckon it could exceed $1 billion.
Mr Mutati said financing needs in the 2017 budget amounted to $1.2-$1.3 billion.
His government had also very recently spoken to the African Development Bank, the World Bank and the Union.
“I can tell you without a doubt they are all enthusiastic to give us budget support,” he said.
Having also met with fund managers earlier in the week in London, Mr. Mutati said Zambia was unlikely to return to international debt markets in the near future.
“One of the things that we must consider is how we refinance the existing bonds, and that is around 3 billion (dollars)…and timing for us is critically important,” he said.
“We have a bit of time, we are going to be a bit cautious – I do not see us hurry to do a refinancing this year – let’s get the economy to settle down a little bit and then let’s see.”
The southern African country had joined the Eurobond issuance frenzy gripping sub-Saharan Africa, selling dollar-denominated debt between 2012 and 2015. The government relied on external financing as revenues failed to keep pace with spending.
The Eurobonds fall due in 2022, 2024 and 2027. The 2024 and 2027 issue currently yield more than 8 percent, according to Tradeweb data.
MMD President Mutati… I think he forgot that post.
Behold, the bag that Mutati will leave you holding!
IMF are the ICU of highly indebted nations, they only come in when a country reaches it’s limit in borrowing, such that lenders don’t don’t want to lend to such a country anymore, what the IMF will come to do is conduct economic surgery on Zambia, ICU situations are 50:50.
Mutati must go … his instance on IMF only leaves us with one thing!!! He has a kick back somewhere in there for him or his surrogates. This economy is firing on all cylinders and he wants IMF money for what?????
I don’t like this MMD kind of arrogance, it is the same arrogance that sold all our assets for pennies on the dollar and it is here back to take away all the gains we have made so far!!!!!
Mutati needs to step aside, we don’t need the IMF, I repeat we don’t need the IMF here …. something is really fishy with Mutati and the IMF back door schemes.
Do you know how much 5 points @ a billion dollars amount to? That might be Mutati’s pocket change here as a potential kick back to him and his surrogates
This is Mutati’s statement … “I can tell you without a doubt they are all enthusiastic to give us budget support,” he said.
Who are these people who are enthusiastic to lend?? Lenders are only enthusiastic to lend when they know they would recover funds when servicing comes along.
This means we are in very strong position to call shots, bane and not the other way round. If we can do bond market next year, why not now … why take a short-gap measure to enrich your pockets, Mutati???
Think about the country not your pockets and those of your surrogates, in fact the entire road network can recover all the funds needed to pay back bonds through tolls, why are you not talking about that???
Mutati said PF government had a surplus in revenue collection so why is he begging IMF to rescue Zambia?
I have always said what PF dogs say the direct opposite is the truth. Mutati should know that lies has short legs.
That money will all be stolen. these guys are putting Zambia in serious problems. where is the money from Copper export? every time borrowing?? I am sure between Mutati and Lungu they will take half the money.
These IMF people killed Mwanawasa because he refused there loans. Their loan schemes have never developed any country in the world. Eurobond is better because it doesn’t come with stupid demands that live you more poor than you were before.
Tighten your belts is the policy of IMF. I’ve a passionate hatred for them
Why passionately heating IMF?
They did not force Zambia to borrow Euro-bonds nor did they squander US$ 9 BILLION within short 5 years on “unprecedented development” which has made Permanent Failures “Leadership” and Chinese companies rich and majority of Zambians hungry.
Instead proportionate your hatred to the REAL architects of current fiscal and economical nightmare.
This government has gone to the pu.ppies. One thing that surprises me is that at this time gvt is planning to borrow to finance 2017 budget, on the other hand over spending and corruption has not stopped.
You PF guys have taken us back to HIPC and SAP! Most bloggers may be too young to remember the pain we had to go through. Yes we needed to improve infrastructure and connect the country through construction of new roads but we could have done it in a more systematic way. The Magande/Mwanawasa administration put together a 2030 plan in which the so called link Zambia 8000 was a component. Because of kulibonesha, you take a 30 year program and squeeze it in 5 years. The end result you get is HIPC and more misery. We should have started in a more systematic way – do economically vital roads and toll them. What did we do instead? We were more politically minded and all we wanted was to sustain our popularity to guarantee us victory in 2016 – typical short-term thinking. We started with…
It was a very big mistake to have entrusted semi-literate Sata with the resources of this country. He thought Bank of Zambia was a big ocean of money where he would get funds without any effect on the country. Some selfish id1ots in government took advantage of the ignorance of Sata to enrich themselves and here we are today putting the blame on IMF! IMF never instructed the PF government to borrow and spend carelessly.
We started with komboni roads that have no economic value which could have been done by ZNS at a very low cost. This IMF deal will be the most painful! Brace yourselves for impact!
If we wanted industrialisation why didnt we invest in power generation and zesco restructuring . Industry needs power,
Mutati mutates too much. Last wk he said Zambia does not need IMF money and now he has changed. IMF money comes with Austerity Reforms and Good Governance. There are too many human rights violations in Zambia from the Illegitimate Lungu Regime. Lungu should release from Jail more than 2000 innocent UPND supporters and allow the Petition to be heard and determined. Without fiscal reforms,respect for Human Rights, Hearing the Petition etc Mutati will not get money from IMF,AfDB, WB etc. Lungu should deal with Illegitimacy first b4 seeking financial assistance from IFIs and International Community.
@Lombe, now you have to hide your real identity through a false, sorry adopted name. But your language or comments give you away because no bemba think like that. Where in southern do you get Lombe? May be Hakailombe?
At least your stup!d!ty is consistent. If only your government also had consistent policies. Advise them please. Tell them how you manage to be an a$$hole without fail everyday 🙂
Didn’t he just tell us the other day that Zambia’s economic prescriptions will be home made and the IMF will simply be an onlooker?
“The IMF will have to fit into our economic recovery programme” -Mutati on Feb 17,2017.
Was Mutati lying then or is he lying now?
There is simply no cohesion in his statements, one day the MMD Finance Minister will say we are going to issue a EUROBOND next he says we will not and pushes his IMF agenda.
Meanwhile the corrupt PF officials and ministers are watching from dark corners like hungry hyenas waiting for the Cheetah to hunt so they can grab a free meal.
They say a stitch in time saves you major surgery. This is the time for HH and UPNDonkey lawyers to caution that Halwabala about treasonable statements which can land him in trouble with the law. HH should not wait until the guy is locked up away from his beloved family and then he goes to police stations to pose for the cameras pretending to be a concerned leader fighting for police bond or bail for his people. These poor Halwabalas believe they are fighting for HB. By the way certain offences are not bailable , treason or aggravated robbery being one of them. Ask Mwaliteta how HH is helping him to reunite with his family. Ask Matambo how it was in Kamfinsa. And UPNDonkeys have not even asked publicly how Elisha was released by the same Lungu police which they condemn and insult every…
The issue is the IMF here not Zambian opposition. Stick to the matter at hand.
How does HH and UPND come into this IMF issue…Did you read the article?
How did you get it to work.. I got it running with “Loaded 1 password hash (Lotus5 [Lotus v5 Prtseieoary])”But!guesprs: 0 time: 7:14:01:34 (3) c/s: 149433 trying: Db0b4orlong time, can this even be right?
They say a stitch in time saves you major surgery. This is the time for HH and UPNDonkey lawyers to caution that Halwabala about treasonable statements which can land him in trouble with the law. HH should not wait until the guy is locked up away from his beloved family and then he goes to police stations to pose for the cameras pretending to be a concerned leader fighting for police bond or bail for his people. These poor Halwabalas believe they are fighting for HB. By the way certain offences are not bailable , treason or aggravated robbery being one of them. Ask Mwaliteta how HB is helping him to reunite with his family. Ask Matambo how it was in Kamfinsa. And UPNDonkeys have not even asked publicly how Elisha was released by the same so called Lungu police which they condemn and…
Mr Terrible
Stop masterbating about HH. give us your thoughts on the comming IMF
Contd… And UPNDonkeys have not even asked publicly how Elisha was released by the same so called Lungu police which they condemn and insult every time they cross the law. All we know is that the family was not happy about their father making senseless sacrifices for a senseless donkey party. If HB cannot advise, please ask Halwabala to consult with Elisha’s and Mwaliteta’s family and learn a thing or two about decent politics.
Now I feel stpdiu. That’s cleared it up for me
Contd… and xxxDonkeys have not even asked publicly how Elisxx was released by the same so called dictatorial police which they condemn and insult every time they cross the law. All we know is that the family was not happy about their father making senseless sacrifices for a senseless donkey party. If HB cannot advise, please ask Halwaxxxx to consult with Elixxx’s and xxxxxteta’s family and learn a thing or two about decent politics.
Contd… and donkeys have not even asked publicly how he was released by the same so called dictatorial police which they condemn and insult every time they cross the law. All we know is that the family was not happy about their father making senseless sacrifices for senseless donkey parties. please ask the officials to consult about decent politics vs prison conditions.
Useless LT, why do you block my comments instead of just editing the names of your senseless politcal friends.
Useless LT!
Ba chembele Mr Terrible, what is wrong ? You don’t like LT reporting about IMF comming ?.
Useless LT, why do you block my comments instead of just editing the names of your senseless politcal friends.
Kikikk the text book economist undoing all of mwanawasa and ngandus hard work. Meanwhile this mutati guy was given a mere minister position as a way to kill off mmd and he fell for that trap. The guy is not sharpest tool and I fear the damage this nut will do to the economy
das video ist sehr gut finde ich und ich finde gut das es leute gibt die den anderen leuten helfen wie der Peter daïekn»¿ aber ich traue mich nicht
Funny that the MMD Finance Minister Mutati is the only one dreaming and singing about IMF…there he is looking for bidget support of $1.4b yet Lazy hardly speaks about it infact Lazy’s language is the opposite…he is talking about railway line projects costing $2.3b….these empty tins are not sincere.
And creating more usless ministries.
HH is so quiet! Can he comment on why the kwacha is gaining.
After spending $10 billion one would expect a vibrant economy, not this sick one with cooked up inflation figures that are showing a drop with an exponential drop in living standards.
Knocked my socks off with kneloedgw!
The opposition should comment on loadshedding as well as kwacha gain. We need to be updated please. Upnd official opposition party till the kingdom comes.
Load heading and weak kwacha should be things of the past after spending $10 billion.
Instead we are hopping for good rains and China buying more copper.
Hopless nyambazos.
JUST A HEADLINE. IMF WILL NOT TOUCH ZAMBIA WITH ANY BAILOUT. OUR RISK OF DEFAULT IS TOO HIGH. BETTER START LOOKING FOR ALTERNATIVE MEASURES TO COVER OUR DEFICIT. START BY REDUCING THE SIZE OF CABINET AND CIVIL SERVICE. WE NEED MORE PRIVATE SECTOR EMPLOYMENT. REDUCE INTEREST RATES AND INCREASE CONSUMER BORROWING. OUR ECONOMY IS STAGNANT RIGHT NOW. WE NEED SOME STIMULUS. TOURISM, AGRICULTURE AND SMALL SCALE MANUFACTURING.
IMF gives Balance of Payments support and not Budget Support. IMF Loans are conditional on the govt implementing reforms, respecting Proterty and Human Rights , practicing Good Governance, Constitutionalism, Democracy etc. Is the Illegitimate Lungu up to it? Sweeping the Petition under the Carpet will not work.The writing is on the Wall!,
“We have a roadmap – stakeholder consultation including cabinet approval – and we hope that the deal can be consummated in the first half of the year,” Mutati said in an interview on the sidelines of investor meetings..
He said it was too early to put a precise number on how much Zambia was hoping to borrow from the IMF.
Surely how can you trust these people in one sentence he says they have a “roadmap” in the next he says he is not sure how much he wants. Meanwhile Lazy has no vision …the PF boss has no vision but the MMD Finance Minister has a road map….really laughable.
There is need for more oversight …the cabinet is full of dull empty tins and they approved everything.
At the rate UPNDonkeys are going (Halwabala) by the end of President Lungu’s second term (2026 of course) southern province will have overtaken Luapula as the most impoverished province of Zambia.
Why? Living in denial and self exclusion from development processes. And at the end of that period the architect of all this HH will not be there to take the responsibility
And Jack Mwiimbu’s complaint in parliamemt? Same thing except that in other provinces they will not allow misguided donkeys posing as “civil servants” to derail development: they are being shown the door!
Mulipenene yama.
In agreement, Luapula province is the most impoverished province because of its people are shallow minded even after a president and a host of ministers from there are in the current defective PF government.
IMF deal with a PF road map is sad reading for the Zambian economy. As a country to depend our national budget from IMF deal yet to be made is more rubble rousing than what Mutati’s sweet talking. a couple of things he mentions that portray Zambia’s bleak in securing funds for our national budget.
Zambia can no longer access international financial market easily because of its existing over commitments made. Mutati alludes to that fact. The assurance Mutati talks about from IMF will not be granted in isolation of the over burden Zambia is currying at the moment. As at now Zambia…
Zambia’s budget deficit is un sustainable because national revenue does not match huge expenses government is spending. Zambia can not get more Euro bonds as does not qualify due to previous ones. Zambia can not refinance the Euro bonds taken earlier as IMF, World bank and Europeans refused Zambia to take that route. In the mean time repayments of Euro bonds taken earlier will begin to mature in 2022, 2024 and 2027 at more than 8% interest rates. These are huge issues which Mutati glosses over as if every financial market likes Zambia. IMF will not gloss over these encumbrances and grant Zambia a blank cheque. Zambians should be passionate to debate these matters seriously and Mutati should begin to tell the truth about it. Most Zambians know about 2 Euro bonds taken but its now being…
Its also strange that no one is concerned with borrowing at a whooping 8%+ and what of Fossil Chikwanda’s sink fund for Eurobond repayment…how much is in there?
come to light that 3 Euro bonds loans was made to Zambia. Repayments will begin in 2022, 2024 and 2027.
Where was/is the application made of these funds? So much corruption is reported in Zambia and little is recouped from corrupt officials. In the mean time loan repayments will burden our children and their children – a very unfair state of affairs to be deduced as cruel parents from our children. Mutati and PF government must be seriously minded with balancing books of the nation. At the moment Zambia hasn’t got the capacity to leverage over IMF conditionals. Zambia still remembers SAP and tightening belts. Crow back stolen money from known culprits as the first step to balancing of Zambia’s budget deficit.
Just look at the PF kaponya bloggers above , instead of talking about the comming of the IMF and defending how their thieving leaders blow $10 billion in 5 yrs with no returns, they would rather muster.bate about HH or load shedding.
I don’t see any reason why Eurobond or IFM should give a monetary funds to Zambia; this administration is getting support from all major institutions in the country and I don’t see this administration lowing uncertainty about one another that we can exchange value.
Lungu please please let’s not go for IMF loan
PF00Lish Govt is a CHIPANTE-PANTE Govt. This must be some SPECIAL KIND OF STUP1D.
Last year mutati said IMF is coming, shortly after that we heard him proclaim that “we don’t need IMF help, they have to fit in our programs. Actually we have excess reserves”. Now today he says the opposite, that IMF is on it’s way to Zambia.
One day PF00Ls recognize Western Sahara then the following week they cut off ties. 2 weeks later they disown Morocco only to reverse the decision after Moroccan King’s visit.
2 weeks ago their Misinformation Minister declared that deadNBC was NOT for sale, the following week the same mouth announces that 60% of deadNBC has been sold to ma-choncholi becoz of Kaloba.
When it comes to CHIPANTE-PANTE GOVT, it’s difficult to know what to believe? So next time…
CONT’D…
So next time you hear that ZESCO is NOT being sold, just know that the opposite is true. Remember Ronald Penza almost sold Zesco to himself during privatization. What can stop LUNGU from doing the same? If he can steal an election, what more a small company like Zesco?
Holy Toldoe, so glad I clicked on this site first!
This man seems not to know the history of Zambia! Lord have mercy! Yes, he must go. His pocket will be oiled and the Zambian economy will be greased for ever!
It’s about time soneome wrote about this.