Zambia has resolved to suspend new non-concessional borrowing-Mutati

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Minister of Finance Felix Mutati
Minister of Finance Felix Mutati
Minister of Finance Felix Mutati says cabinet has resolved to suspend new non-concessional borrowing.

Mr. Mutati says cabinet this month also issued and gave clear policy directive such as developing a new financing profile.

The Minister says the new financing profile will ensure reduction in debt distress from high to moderate over the medium term and further ensure the debt remains sustainable thereafter.

Mr. Mutati says cabinet also resolved that no commercial contracts that require debt financing should be signed without treasury authority.

He says it was also resolved that tender and legal approvals should not be given where funds are not available.

The minister was speaking in parliament today when he gave a ministerial statement on the state of engagement with the international monetary fund-IMF.

He said it is the task of government to ensure it borrows within its capacity to pay and refocus expenditures while enhancing domestic resource mobilisation.

Mr. Mutati says government has resolved to have an IMF supported program adding that the nation will be updated on a regular basis.

He says the major outstanding issues under discussion with the IMF are the need to take measures to slow down the pace of debt accumulation and return Zambia’s debt risk from high risk of debt distress to low risk.

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29 COMMENTS

    • Mr Mutati, I know you are trying hard to fix the economy, though you dont have much clue on what to do. However, if Fiscal Discipline is what you are really aiming at in order to have the IMF deal swing our way, then start by stopping the tourist President from traveling aimlessly…..

      We can save a lot of money if that man can sit down in his office for once..

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    • Mr. Mutati, I believe you are very smart. The biggest problem in is corruption and it starts at the very top. Just look at the auditor general’s report. Lets start by rooting this out with obvious culprits then once controls are in place we look revenue generation and mobilization. The problem is a different president will be needed. This one is still questionable.

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  1. All of you are just dunderheads bane starting from that clown we call a president. Majority just wants you gone so to hell with these statements. After you borrow us to death nomba ati mfyo mfyo. Nonsense! mxxm!

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    • ….eerrr…is this the same majority that put PF and ECL in power while rejecting upnd six times????

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    • @ Zambian Citizen, when are you going to stop regurgitating this NONSENSE ?????

      There is NO “majority that put PF and ECL in power” !!!!!! THE ELECTION and THE NOMINATION was STOLEN using Mugabe tactics.

      Why do you think the FACTS never saw the light of day in the CONCOURT !!!!!

      Wake up you M0R0N !!!!!

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  2. Mr Mutati, I know you are trying hard to fix the economy, though you dont have much clue on what to do. However, if Fiscal Discipline is what you are really aiming at in order to have the IMF deal swing our way, then start by stopping the tourist President from traveling aimlessly.

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  3. This man is a liar …he treats us like kids..they have not resolved anything if they had their way they would increase it….these are one of the conditions IMF has given them.
    Only a PF dull cadre would believe such utterances!!

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    • “Mutati says cabinet has resolved to suspend new non-concessional borrowing.” What a joke !!!!! PF has dragged Zambia so low NOBODY in his right mind thinks we are a good credit risk anymore with TEN BILLION in debt and a guy that calls himself “President” burning money on world travels that do nothing for the economy.

      Mutati, just call a spade a spade instead of trying dress up a wolf in sheep’s clothing. That is not a cabinet resolution, is is simply a fact of life of this government making!

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  4. Kindergarten economics – at what stage did it start getting clear?

    As long as we have below par citizens in office, Zambia will never develop.

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  5. All tgese announcements from the minister and zra are to tell the IMF they are doing what they have been told to do to get the bailout.. none of us will know the true figures with this government,.
    Does the minister know how much the FRA owes the farmers. Outstsnding debt to the farmers has a carryover effect because it limits spending,
    Every parastatal lately has been announcing that local debt has been settled this is IMF requirement
    We are broke

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  6. How can you stop borrowing when you no longer have the capacity to borrow. Zambia can now only borrow from hard core shilocks who are wiliing to risk their money for a highier return or go the IMF way which puts strict measures that will make us move with a lamp on the throat as citizens. Simply put, you are putting in these measures after the damage has already been done. Who was lifted up the debt cealing left by mwanawasa? Who was saying the problem with zambians is that they fear borrowing? Who was saying we are in a hurry to develop? Now the chickens have come home to roost. Nayonayo.

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  7. you were warned…too much travel by ECL..
    you can never get your economy in the black….
    it will always remain in the red so long there is unnecessary travel by big govt delegations every week…
    thats why IMF is refusing their funds…
    no tangible benefits occuring in zambia currently.

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  8. Mr. Minister just a few months back you were saying Zambia still has the capacity to borrow. What has changed now? Besides sort out the fiscal discipline and corruption first if you want to stabilise the economy apart from those preconditions you have been given by IMF.

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  9. The tragedy with most upnd supporters is that Felix, after endorsing their “perfect, economic fixer, infallible” president hh in 2015, he sat down with ECL and chose to work with ECL over hh. If Felix had remained loyal to hh, today all the upnd supporters would be singing high songs of praise for him and probably calling him the best economic brain in the land. Any rational person will tell you Felix’s statement is consistent with the latest government strategy of fiscal discipline and cut down on expenditure. So to criticise him and the government at every turn is consistent with the opposition’s bitterness after their loss and strategy to smear the government with dirt-a plan that is proving not to be working with each passing day.

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  10. I hope enhancing domestic resource mobilization is not coming up with more tax burden on us Mr Mutati, Ka?

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  11. The job of opposition is to give us alternative economic policies.
    UPND has no alternative economic policy to talk about.
    Their manifesto is too outdated and way out of touch with modern Zambia.That is why they don’t have a shadow cabinet.
    Running a government is teamwork.
    Leadership is about building successful teams.
    However,the UPND have created a personality cult with one person thinking he can solve ALL our problems.That’s the reason he has failed 6 times and his followers specialize in name calling and tribal gymnastics.

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    • 100% correct, Beyond!!! That manifesto, the shadow cabinet, the dynamic and professional team that was UPND died with Kambela Mazoka. Ask yourself this, would Mazoka have picked GBM as his vice???????????

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  12. How many of these good ideas have been considered and fail at implementation stage? Zambian, let’s unite and swoop down on bribery and corruption. It starts with me as an individual, it starts with you my fellow country men

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  13. Stop borrowing all together, cut the number of Ministries to 15 they can serve 13,000,000 people, reduce parliamentary perks by 25%, do away with the silly chiluba idea of DCs, do away with Deputy PS and PPS otherwise all lip service

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  14. Non concessional loans are actually from IMF if you Google what are non concessional loans, of which it would appear we are not on the list of countries eligible as at oct 2017
    Zambias finances are already being directed by IMF , obviously we are desparate for the bailout even though our humble president says we dont need them, yet we are even a member of the IMF, and he is our humble president but was unaware of our membership when he said we dont need THEM he was actually saying US a wis and humble oresident!

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