IMF dismisses Zambian borrowing plan, putting loans on hold

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The International Monetary Fund has rejected Zambia’s latest borrowing plans, saying they risk making it harder for the country to sustain its debt load, the IMF said on Friday.

Zambia had hoped to have a $1.3 billion loan agreement with the IMF completed early this year, Treasury Secretary Fredson Yamba said in November.

The IMF’s rejection puts those plans on hold.

It was the second time the IMF had rejected a Zambian proposal.

In August 2017, it also turned down borrowing plans it said threatened debt sustainability.

IMF staff then requested new borrowing plans before it would resume talks on a lending programme, the IMF said from Washington in a written response to a press query.

“However, the latest borrowing plans provided by the authorities continue to compromise the country’s debt sustainability and risk undermining its macroeconomic stability and, ultimately, living standards of its people,” the IMF said.

“Against this background, any future programme discussions can only take place once the Zambian authorities implement credible measures that ensure debt contraction is consistent with a key programme objective of stabilizing debt dynamics and putting them on a declining trend in the medium term.”

Treasury officials could not be reached for comment.

Zambia’s total public debt at the end of August 2017 stood at $12.45 billion representing 47 percent of gross domestic product.

The IMF will continue to engage with Zambia through regular discussions and technical assistance, the fund said.

Zambia and the IMF agreed in October to chart a new path towards debt sustainability after the IMF delayed the conclusion of talks, saying it was at high risk of debt distress.

Chibamba Kanyama, a Lusaka-based independent economist who previously worked at the Washington-based lender as a communications advisor had predicted earlier in the week that change in leadership could prove pivotal for the planned $1.3bn loan after talks stalled last year.

“It’s either a deal breaker or a deal maker,” he said by phone. “The next two weeks will determine how the IMF discussions go”. Either the process will collapse, or the parties will decide to “re-engage afresh”, he said.

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84 COMMENTS

    • I really wish it was Charlotte Scott who was Minister of Finance. This Maggie M (M-squared) is overrated, she is not that hotty for IMF briefcase carriers.

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    • So, we know now why Mutati has been moved, he failed to secure more kongole…
      And Mwanakatwe is brought in to try her luck with Chinese…

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    • Zambians are lazy unprogressive people whose solution to every problem is to compose a song about it and then dance like monkeys. Once exhausted from dancing they sit down and blame government

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    • Nostradamus I did not know you too suffered from an inferiority complex. The Scotts wanted Zambia subservient to the UK. I would rather Mangande.

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    • @Nzelu, wabe toalle, what came into you to insult nfinyofinyo complex? Have you seen my woman? Do you know how many races I have opened their legs?
      Like am saying, the beautiful ones you have seen are Maggy , Dora & Mulenga .
      Elo iwe chhiikala twalanyina kwisa lelo??

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    • Mwanakatwe’s appointment as Finance Minister, is a conspiracy on the economy. It’s broad daylight rape!

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    • nation so that Zambia can mobilise the funds it needs to foster development. Or else Lungu and his fellow thieves should put back money they stole to fund these stalled projefts.

      KK borrowed $10 billion in 27 years and used it wisely while these PF koswe mumpotos have borrowed and stolen over $12.5 billion in less that 5 years.

      Zambians wake up!

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    • The IMF heard it themselves the president inviting his subordinates to steal money but not to steal everything. Uubomba mwibala alya mwibala ( Lungu,2018). The IMF has no confidence in Lungu’s administration because of bupompwe munshibila nama ( Kambwili,2018).

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    • She worked in top positions in banks but does this give her the righ credentials to run government ministries? Also Maggie left Ghana bank with sticker on her back for drinking! So meetings with the president will go down well but she will not be able to get that big loan the government really wants. IMF have warned Zambia to put their house in order but this has not happened yet!! So no loans yet
      Government wants to add tax on property rent to generate income this called ripoff Zambia #rent tax

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  1. We have said that these PF minions are up to no good. It’s dununa reverse all the way. What a shambolic government.

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    • She drinks like a man. She has a problem and need help with alcohol issues. This is a wrong job for her. Fundanga would have done a good job Zimbabwe have gained we have lost

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  2. “However, the latest borrowing plans provided by the authorities continue to compromise the country’s debt sustainability and risk undermining its macroeconomic stability and, ultimately, living standards of its people.” – IMF. If it’s a Zambian, especially one living in Zambia, who says this, then they are perceived to be pro-opposition….and they get attacked/threatened. I think one quality of maturity is having the ability to welcome divergent views and objectively assess their merits or demerits in the quest to learning from them as opposed to being too quick to dismiss them simply because they’re coming from our perceived “enemies/opponents” and/or don’t seem to sing us praises for our “achievements.”

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  3. IMF will never agree to any loan with Zambia until the government acknowledges its debt is more than $20bn. Dr Mumba has been cataloguing our debt and it is much more than the $7.9bn that government insists on. IMF knows this.

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    • @jay jay
      WHAT HAVE YOU EVER DONE TO WARRANT YOUR INSULTING OF OUR LEADERSHIP
      YOU SOUND LIKE A JAUNDICED “KNOW IT ALL” WITH NO MANNERS
      HARD WORKING ECL AND US DILIGENT ZAMBIANS WILL PULL US THROUGH
      WITHOUT YOU @jay jay

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    • You are just as clueless as Lazy Lungu and his Old Hen Veep Bo Inonge who are going round the country wondering why projects have stalled. What PF has done is not only foooolish its reckless…its your Grand children who will pay the Chines and be their slaves for all this debt…now that’s an insult on future generation especially that there is absolutely nothing tangible to show for!!

      Wake up from your folly!!

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  4. This is very good development. The borrowed money would have gone straight to the corrupt coffers with nothing to show for. Good work by the IMF. Now if we can get back our country from the Chinese, put Lungu and his clowns in Prison and throw away the keys, Zambia will do well.

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  5. PF is hardcoded to function with borrowed money only……after spending $17 billion, exports should be at a all time high with manufacturing employment at an all time high , but instead manufacturing jobs are exported like the $62 million ZAF uniforms order and we are getting 10, 000 jobs for selling talk time instead……
    .

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  6. There are only two people competent enough to be Finance Minister. They are Dr Musokotwane and Magande.

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  7. you can’t have 47% of the country’s gdp in debt. even in anyone’s household if that were the case, they’d be heading to disaster. those who blindly support the pf are selfish. they are not realistically looking at the effect of repaying such a huge debt which by the way are conservative figures, the national debt is around 14 billion.

    I am an economist I know what I am talking about. this is not sustainable, not even in the long run, I am talking about 3-5 years this will implode . these guys need to sit down and re-evaluate their projects. they want to seem overly ambitious, party to impress voters and also to keep on stealing

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  8. We knew the 13 billion but In terms of Monetary Fiscal and Structural flexibility Zambia is better than Egypt which the IMF committed support of $12 billion loan this loan as compared to Zambia’s less than $ 2 Billion dollars in fiscal, structural and monetary transmission mechanism’s is by far better than Egypt It’s an opportunity for IMF to do some Financial marketing and not loose regions to other emerging supranational especially AIDB or the Exim’s in competition They should open up the window for Zambia whose fortunes are much better and brighter than the Egypt $ 12 Billion loan
    Here is an extract from Brookings Doha centre “IMF PROGRAM: ASSESSING THE POLITICAL ECONOMY…

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    • You are being over generous with the fortunes of Zambia , eygpts GDP stands around $250 billion.
      Eygpt is a major exporter of finished goods in the ME .

      revenues just from the Suez channel alone stand at around $5 billion pa…

      So you can not compare eygpt to Zambia…and also eygpt is in a vitally important geo strategic location for the USA….

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    • You forget that Zambia is small and younger than Egypt. You can’t have a small population of 13 million people which half of it is youth age and have half working class paying taxes do the maths please
      We should not sit on our hands and cry that others countries are also doing badly so it is only right that Zambia is in the same boat yaba!

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  9. CHALLENGES” Bantufye Nabo
    Egypt’s IMF Program: Assessing the
    Political Economy Challenges
    On November 11, 2016, the International Monetary Fund (IMF) and Egypt signed a $12 billion loan agreement with the aim of “addressing macroeconomic vulnerabilities and promoting inclusive growth and job creation.” Prior to the IMF program, these vulnerabilities included an overvalued exchange rate (and the corresponding rise of a parallel, or black market, exchange rate); foreign exchange scarcity, which severely undermined private sector activity; a dramatic drop in foreign exchange reserves; large fiscal deficits; and a high level of public debt.
    Accordingly, key features of the IMF’s three-year Extended Fund Facility (EFF) program have included the liberalization of the exchange rate…

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  10. Somethings are a blessing in Disguise. The more you borrow, the more you have to pay back, especially with thieving government officials.

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  11. regime (i.e. floating the Egyptian pound), fiscal consolidation to lower budget expenditures, tax increases, deep structural reforms, and lifting business regulations to spur economic growth. The EFF program was also expected to secure an additional $3 billion from the World Bank, $1.5 billion from the African Development Bank, and $6 billion from bilateral donors.
    While the program has technical merits, critical political challenges to its implementation remain, and thus it may fall well short of its goal to lay a foundation that can help transform the Egyptian economy. Lack of investor confidence in President Abdel-Fattah el-Sissi’s government may also upend the IMF-Egypt agreement.

    It is important to recall that “Egypt’s economic and developmental ills did not begin after the…

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  12. revolution; they accumulated over previous decades and in fact contributed to the circumstances that brought about the revolution and its demands.” The IMFEgypt program that is examined in this policy briefing, moreover, is just the latest round in the institution’s dealings with Egypt. ging investment and liberalization, as evidenced by IMF structural adjustment policies starting in the 1980s. According to Mohamadieh:

    The rest you can read on your own but IMF needs Zambia a fallout to other side will close sub sahara for them to China AIB or Exims They need to read the market well

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  13. KALOBA after KALOBA after KALOBA which has been looted. External debt is over $23-Billion. Internal Debt is another $10-Billion.

    PF is clue-less on how to grow the economy & is dependent on over-borrowing. The only option is to go back to our vomit, IMF. what a shame. We graduated from IMF Structural Adjustment Plan under FTJ’s MMD. To take us back to that pain is criminal.

    Zambians deserve better than this crop of thieves.

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  14. and see long-term as the relevance of the fund is at stake here Officially recalled like musholozi for good never to be heard again will resist the temptation ///

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    • Esshhhh Sharon , still no one from that embassy will to help you out of your sexual frustration ???

      Imwe guys ku embassy ku Washington uko , mutandizeni mukazi uyu…..ati vuta na nyele ya HH….

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  15. Stay focused Mr. President and GRZ. It is you who was voted in to run the country not others! You are doing well. Remember, no one would like to see a developed Zambia but you and your visionary supporters! Others are bangwele don’t listen to them! We know the history better.

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  16. Because upndeez have never said anything good abourlt anybody, and because most of what they say are lies, and because they are rotten with hate, we cannot tell when they are telling a lie or a truth. Every citizen now knows that the safest position is to ignore them and their ranting.
    Just look at this story, quoting a false reply by IMF to a false rotten press query, since when did a respectable international finance institution divulge details of their negotiations with a client? These are bankers you rotten fools, did you ever hear them discuss h.hs overdraft applications?

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  17. All mammals who were born yesterday do no know what these guys want! Even their tribal chief doesn’t know. That is why he goes to RSA and other places to sell Zambia.

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  18. Because upndeez have never said anything good about anybody, and because most of what they say are lies, and because they are rott.en with ha.te, we cannot tell when they are telling a lie or a truth. Every citizen now knows that the safest position is to ignore them and their ranting.
    Just look at this story, quoting a false reply by IMF to a false rotten press query, since when did a respectable international finance institution divulge details of their negotiations with a client? These are bankers you rot.ten fo.ols, did you ever hear them discuss anybody’s overdraft applications?

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    • You and I are part of those people, my friend. Self-pity is not the solution. There is so something we can do to change the status quo rather than just feel sorry for our country.

      There is a call of duty for Zambians at home and abroad to wise up, rise up and rule our destiny by investing in our country and helping to resolve the problems we face as a nation.

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    • @ 26.1 Nine Chale:

      There is a cult at the helm. What Zambia needs is something of a magnitude, the size of an “Arab Spring” – that sort of thing. Otherwise, we may just as well forget.

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    • @ 26.1 Nine Chale:

      Do it Prof. Clive Chirwa style and you are sure to become the sacrificial lamb.

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  19. Thanks IMF for not giving money to these PF crooks.
    IMF is more concerned about Zambia’s future than the PF thieves in government.

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    • IMF work with data…not lies from the sly kaponya mouths…if you put 2 and 2 in a computer, it doesnt take 5 mins to talk to people for bribes it just gives you the answer.

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  20. In other words, the Zambian submission was just a bunch of gibberish. The next president needs to hire reputable accounting firms to conduct forensic audits to find the money and lock these corrupt thieves in a cell.

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    • We hired one during the privatisation era and look where it landed us.

      The consultants became greedy.We are basically in a catch 22.

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  21. 2014 we slid in a crisis. Copper hit $3, 500/ton. 4 years later, copper has hit $7,000 and things are looking up. Do we really need this bail out??? How have we made it in these 4 years??? Chances are we don’t need IMF money, Moody’s has just put us on a forward rating meaning our creditworthy has just improved. I think we will make it without IMF…

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    • How have we made it in these 4 years??

      You were still spending the borrowed billions……it is all gone now…

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    • …1.d.i.o.t. Do you know what happens when a country runs out of money??? Moody’s would have junked us. Use your head before you comment not your ****!!!!

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    • The price of copper may have gone up but those mines no longer belong to the people of Zambia. Having a debate with different views is healthy. Insults are usually a sign that your opponent may be delivering a valid point. It may not be true but that’s what it looks like. Let us be civil with each other. We all love this country.

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    • If you bring up sensible points, I will be civil. If you want to always bring up rubbish, you will get what you asked for. Even if we don’t own the mines, what about the royalty and other taxes they pay??? Production is already on the upswing meaning more taxes will be paid, not so???

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    • True. However you and I know that it is better owning your own house rather than paying rent to a landlord. They still are getting the lion’s share while Zambians are getting peanuts. Now I am wondering if I have brought up rubbish and will be getting what I asked for:-).

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  22. Hanegatives, HaDelusions, HaChildish, Havisionless, HaTribal, HaHallucinations, HaThree Mansions, Ha Panama Papers, HaHatred, Ha….

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    • Childishness! For your information I’m ECL tribesman but I have never voted PF because I knew they would land us in this economic doldrums

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    • @ sharon/victor

      you forgot Hawanking, Hafingering, Haanointed, Hahumble, Hacorrupt……………..

      By the way, any success with crowd financing for your gender change operation?

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  23. Hahaha ,in 2011 when the economy was doing great you threw out Rupiah Banda bcuz of alleged corrupt deals (which were never proven) and brought in very incompetent team to guide the economy.Now live with your bad choices the IMF can see what we foresaw in 2011.

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  24. @ Zambian Citizen is suggesting that the ‘economy is looking up’.

    That’s only because it’s lying flat on it’s back!

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  25. Good question ,BR Mumba is just a kantemba type businessman and a graduate of Misisi poverty business school.

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    • Cadre BR Mumba is just a useless P.F, cheerleader who eats crumbs from Corrupt Jona’s table.
      Ni zee lelo, no “Zambian Corrupt Enterprise” rants tonight!

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  26. Meanwhile the Chinese are now blatantly showing their racism against Africans… their rise in Africa will be worse than experiences of the British Empire colonialism. (replace underscores):

    h_t_t_p_:_//_w_w_w.smh_com_au/world/

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    • h_t_t_p_:_//_w_w_w.smh_com_au/world/blackface-skit-in-chinas-new-year-gala-sparks-racism-accusations-20180216-p4z0ny.html

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  27. Large sections of this article are lifted from a Reuters article within acknowledgement. LT that is plagiarism! You’re becoming less trust worthy and you’ll become irrelevant soon! #smh

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  28. You are forgetting who was responsible for enforcing Intellectual Property rights in Zambia until two days ago?

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  29. The clock is ticking on these clueless thieving clowns with an apology of a leader whose legacy will be the theft and presiding over a regime that made Zambia the most indebited country in the region who declared the state a kleptocracy! Dudu will have to learn a lot of tricks to convince the IMF to change their mind. This country can not service the accumulated debt as it is. Lungu to contract more debt so he can cream off, typical of his ubomba mwibala philosophy!

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  30. The IMF is just behaving like a responsible father who wants his son to stand on his own two feet. The IMF has seen the potential of Zambia raising money locally by not under taxing or exemptions from taxes for industries. Collect every ngwee.

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    • The IMF has seen that Zambia is run by irresponsible clowns without a clue. This should tell you the calibre of your leadership considering that they spent all these months coming up with a kama package to try and entice IMF to release the money but they trashed it. All they had to do was listen to sound bites from Lungu’s speeches especially the time he declared IMF could go to hell and they realised they were dealing with the dumbest president in existence today.

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  31. Maybe the president’s comments in kitwe concerning 10% management on donations might have been heard outside zambia

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  32. To me it’s just a difference of opinion, no two economists think the same. If you replaced the IMF team discussing with Zambia with another they would arrive at a different opinion about Zambia’s case. Didn’t you notice that the IMF-GRZ discussions only took a different turn when the previous IMF team leader Tshikata was replaced with the current one? Upndeez will say Tshikata was corrupted by Lungu, because to them anybody who disagrees with them and agrees with Lungu is corrupt. But the truth is that its just personalities and different interpretationst of economics.

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