Zambia holds meeting with IMF over the rising debt risks concern

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Finance Minister Felix Mutati and Bank of Zambia Governor Denny Kalyalya in Whashington

The Zambian Government, led by the Minister of Finance Felix Mutati, and the IMF had a number of meetings on the sidelines of the IMF/World Bank Annual Meetings in Washington DC, USA, at which discussions were held on the way forward following the completion of the Article IV REVIEW by the IMF Board.

Both the IMF team and government Authorities are generally in agreement with the outcome of the Article IV consultations, particularly the concerns raised with respect to the rising debt risks and the recommendations made on fiscal consolidation and the need to lower debt risks.

The two sides discussed the need to re-define Zambia’s borrowing plans going forward in view of the risks associated with high levels of debt, the need to continue fiscal consolidation and reassessment of the priorities of the 2018 budget.

In view of the above, the two sides agreed on the need to review and redefine the macroeconomic framework that anchors a path towards debt sustainability. The Government agreed to provide data on recent developments in the economy, the 2018 budget and the borrowing plans.

Once this data had been reviewed and validated, the IMF would field a staff visit to Zambia with the objective of redefining the macroeconomic framework.

The IMF Director – Africa Department Dr. Abebe Selassie and the newly appointed Mission Chief to Zambia Dr. Brileau Loko will soon conduct a short outreach mission to Zambia to meet with country authorities to discuss recent economic developments and policies.

This is contained in a statement issued by Permanent Secretary [Economic Management], Ministry of Finance, Mukuli Chikuba, in Lusaka today.

43 COMMENTS

  1. But this conclusion was known even before the trip.
    Eurobond is due in 2022.
    Eurobond idadyewa monga Chiwaya. Osasiyako na cha mbeu chimanga.

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    • MF or/and Felix Mutati and group, please simplify the language you are using to communicate with us. There is too much jargon and at the end of day literally means nothing to the originators themselves …

      I know for a fact the cost of personal borrowing in Zambia will not reduce and that will keep pushing the cost of living. Politicians will want more free things and impunity goes on …

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    • So these guys couldn’t define our situation, we have to have IMF involvement? Wapya munzi. They thought Zambia would borrow herself from debt and poverty. Elyolwanya!

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    • Mozambique was recently denied an IMF loan after it was discovered that they were hiding a massive loan of $1.16 birrion (not billion) dollars. Zambia and Mozambique are like monkeys that forage the same forest, and there has not been a clear picture of how far down the bottomless debt pit we are.

      Prepare some adult diapers.

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    • And yet other people he on this forum were busy saying Zambia can do without IMF….Even ECL said so….why then are you still begging IMF if you can not do with them?
      Really? Jokers!!

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    • The problem is not the money. IMF can give us money. Ubwafya is that you guys are behaving like kids. You are spending public funds like there’s no tomorrow. You need to remember that the money you borrow today should be invested so that the return can used to pay back the loans (Finance 101). But you are busy using the funds for presidential tourism.
      I’m now concerned with how we are servicing our current loans.

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    • Meanwhile along Indepenence Avenue in State House, our utterly Lazy Lungu is busy dancing with excitement as he is packing suits in cases for his flight to Congo Brazaville Summit on Wednesday … where he is going talk about rufugees and meet fellow dictator Kabila…thats more important to him than the economy.

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  2. IMF or/and Felix Mutati and group, please simplify the language you are using to communicate with us. There is too much jargon and at the end of day literally means nothing to the originators themselves …

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  3. Lets just forget about IMF bailout and look to China.IMF is full of politics.plus why do we need the bailout when our economy is ok now?
    The shocking part is UPND already celebrated that IMF wont bailout Zambia a week ago while negotiations are still on-evil creatures indeed!!for upnd,any negative news about mother Zambia is exciting-amazing people!!
    TAKE NOTE, NO WEAPON FORMED AGAINST ZAMBIA SHALL PROSPER!!

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    • Do you even know how much you owe China to date? You do not even know what China is planning for your Grand-children.

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    • But Njimbu you behave like you did not go to school. Do you think China will give you money just like that. Continue with your dununa reverse and while you are busy dancing dununa reverse and living in sugar candy country, forget about China and IMF bailing you when they know that each time they give you a loan, you pocket it and forget that it has to be repayed.

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    • Just concentrate on your plan of enslaving our country to money lenders for eternity without involving Upnd. Anybody who celebrates begging and loan-shopping is a fool. Do you even understand the implications of huge loans on our future generations? Upnd is right because they understand the consequences given the type of leadership we have who can unflinchingly spend a million dollars on wheelbarrow

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  4. The lies are catching up with the sly Accountant Felix the cat.. you cook it all you want but IMF will release the true statements. You are not dealing with the mines where you sign deals behind closed doors.

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    • Jj if their is an accountant you need to give respect is mutati. He is I class of his own. Talk about tribalism we will understand you not mutati.

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    • Don’t post comments whilst under the influence…no one will under your gibberish apart from your fellow drunkards like KZ, Mvinga and Lazy Lungu.

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    • @ little oval prick head

      Respect to “mutati”???
      For what? Skimming with his brother proceeds of privatization and depositing loot in Channel Island banks?

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  5. CLUELESS BEGGARS , UPND WOULD NOT START MAKING ANY IMF BAILOUT WITHOUT ASSESSING WHETHER WE CAN SUCCEED OR NOT. LOOK AT PF THEY HAVE BEEN WASTING SO MUCH MONEY AND TIME SINCE 2015 ONLY THEIR APPLICATION TO FAIL, UPND DOES A SENSITIVITY ANALYSIS WITH DEBT PROJECTIONS AND WOULD NOT WASTE TIME TO APPLY IF FOUND NOT VIABLE. BUT PF NI CHIMBWI NO PLAN

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  6. Why doesnt Mutati state the Debt Stock figure?We heard $3.2 Billion had been concealed by the Zambian govt and was discovered by IMF. So what is the figure now? Can’t Mutati give the debt that was accumulated under his watch and how much was inherited from Alex Chikwanda. The Zambian govt needs trasparency on the Debt issue. Is the Debt figure $7.2 billion, 12.4 billion or 17.2 Billion? Which is which? What was the Debt contracted for and by whom?

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    • @ Chibwe, here are your answers –

      US$ 30 Billion. 10 Billion accumulated under Chikwanda, the remainder under Lungu and Mutati. Your figures are from the “creative accounting” used by these crooks to hide the real commitments they have undertaken in the name of Zambians, some of which has not even been borrowed yet – like US$ $ Billion for Batoka Gorge!

      What was the Debt contracted for and by whom? Do you need to ask? By Lungu for STEALING !!!!!

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  7. All these years, all these meetings and at the bottom line Zambia is still fixed on the hook of IMF.

    Don’t these people know that the game will never change until we rewrite the rules in our favour? We desperately need to restructure our economic model: we need to make sure that we can thrive without these institutions (if we have to borrow, then let it be from within the continent).

    It may be a strenuous path to follow but if in the end we can sustain the economy on our own, it is a path worth following.

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    • No ..why can’t you live within your means INSTEAD of going to Washington with a begging bowl? You know what? you can dupe new bloggers to this site with a voice of reason but most of us know you…really laughable..we remember you as people who supported this reckless expenditure. Where is your so called sink fund? what is in there apart from cobwebs.

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  8. Just stop borrowing and live within your means.
    It’s a disgrace to have IMF talk to us about our financial mismanagement.
    When are we growing up to start managing our own affairs?

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    • When are we growing up to start managing our own affairs?

      WHEN THE THIEVES IN STATE HOUSE ARE TRANSFERRED TO JAIL!

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    • Put credible leaders who can account for every ngwee not monkeys in a maize field then your problem will have been solved.

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  9. Yaba palast let’s just ask to be colonised again my granddad said transportation was much better.

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  10. I think it is now clear to all that the PF-MMD alliance has been a bad experiment for Zambia. Mutati, Mulusa, Mwale, Siliya, Mwanakatwe, Lusambo – none of these is adding any value to President Lungu. If anything, they are everyday subtracting from and dividing PF. President Lungu should read the writing on the wall, his first year of his own term of office has been a huge disaster! Mutati has failed to produce an economic programme for Zambia and now the IMF is telling him to start working on plan B after one year of pursuing an elusive IMF programme. President Lungu needs to change his economic team, as the current team has failed him big time. PF thought the sonta which they did in 2016 was because of President Lungu alas its clear Sata was architect!

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  11. You fought for independence from whites and you are going back to them, Kanshi ninshi mufwaya ba fee colour!

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    • You go to get Eurobonds and build hideously overpriced roads and projects you wonder why you are broke …you don’t sit down and wonder why its called a Eurobond. There you are thinking the Chines are your partners yet all they want is the same thing your colonists wanted. Col. Thomas Sankara warned you about borrowing 35 years ago you never listened…Mwanawasa put us back on the right track and MMD managed it prudently, what did you do? Spend spend like no tomorrow…

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  12. UPND is a very useless party! It always sees “thieves!” It never sees the thief and plunderer of Privatization HH! It never acknowledges that he got rich over Zambia’s resources and see others as “Thieves!” What a useless party of retards and children!

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  13. All who oppose the government are from “one” tribe! Does that tell you something? It says volumes! Under Five will NEVER be president in Zambia! Keep dreaming! The Finance Minister above wil become the next president!

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    • Most likely he’ll change his tribal colours then. We’ll wake up to a Tribal stitch up when Mutati announces his Vice President…….ONE HH !!

      Hold that nightmare. Don’t be gullible to think Mutati would not advance his tribe.

      BUT HE’s okay for now. Let’s not fire him!!

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  14. There are very few instances where borrowing has ever led to successful transformation or improvement of a nation’s status in Africa. Reason being that our collective character, as a people is in a very bad shape. See what happened with MMD/RB? We cried for change but ended up with a worse one. Granted, we truly need a patriotic and honesty leadership but for us to to better our lives, there is need for a national collective responsibility in our approach to work culture, religious spirituality,.natianal vigilance, selflessness, honesty and energy because our so called independence has led us to laxness, softness and indifference. So many instances where, as citizens, we say to our leaders, “oh, you decide, I’m too busy, ” Or, “who cares,?NichaBoma” Or, “It’s too complicated.” We…

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  15. All countries need to borrow to plug shortfalls in economic capability. BUT, I think for African states there is a danger of dependency. We must really try not to borrow as there is a danger of Govn’t failure to be astute in good financial management. It does not pay for us as we become beholden to these institutions to make national decisions. We vote for our Govn’t and they hand power to Amnesty international, IMF. etc, etc.

    We have ability through our wealth in Mines, Land(Agriculture), and our SME Business industry. WE NEED TO CUT OUR CLOTH according to what we have, not borrow.

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  16. With Senior Economist Mumbi Phiri being part of Mutati’s delegation nothing came out of these discussions. The trip was to earn travel and subsistence allowances. The likes of Mumbi Phiri were on a ZESCO sponsored holiday and Shopping Spree in Washington DC. Do u think IMF can lend its precious money to the corrupt Lungu Regime. Without an IMF Cash Bailout, Zambia will default on its Foreign debt repayment and the Kwacha will soon sharply devalue without Balance of Payments Support from the Fund. Does Senior Economist Mumbi Phiri even understand these economic terms? She is best for Election Rigging and not for managing economies.

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