IMF still considering Covid-19 request from Zambia

14
1,782 views

The International Monetary Fund says it is still considering a request from Zambia for emergency Covid-19 pandemic funding.

On Wednesday, the Fund approved requests for emergency pandemic aid from 50 of its 189 members for a total of about $18 billion and it says it is continuing to work quickly through the remaining more than 50 requests.

IMF Spokesman Gerry Rice told reporters in an online briefing that IMF’s executive board is considering a request from Zambia but did not disclose the amount requested for.

“I want to turn to Zambia, on which there have been a number of questions. The questions relate to — does Zambia qualify as a PRGT country? That’s that poverty reduction and growth trust facility of the IMF’s, which I mentioned at the beginning, which provides concessional resources. So, the question is: does Zambia qualify, technically, to apply for the rapid credit facility, as well? So, that’s two questions, there, and has it applied?”

“So, the answers are yes, Zambia qualifies as a PRGT-eligible country, and, yes, also qualifies to apply for a rapid credit facility. The authorities have requested emergency assistance from their international partners, including the Fund, and I can tell you this comes in addition to an earlier request for Fund support for Zambia’s economic reform program, aimed at restoring macroeconomic stability, as well as debt sustainability, while increasing growth and fighting poverty,” Mr. Rice said.

He added, “So, where we are is — you know, I’ve given the status of those eligibility and requests. We continue to have active discussions with the Zambian authorities on their economic responses to COVID-19, as well as their macroeconomic objectives and policies. So, we are in active discussion with Zambia around those requests.”

Mr Rice said the aid granted under the IMF’s rapid financing initiatives comes without the usual conditionality, but the Fund is working to ensure transparency and prevent corruption by asking all recipient governments to commit to enhanced reporting of crisis-related spending and undertake audits.

He said the funds were also subject to the IMF’s safeguards assessment policy, under which a central bank’s framework of governance reporting and controls must be deemed sufficient to manage resources, including IMF disbursements.

He said as of Wednesday, the IMF’s Executive Board had approved financing under these emergency facilities, at record speed for for 50 countries, totaling about $18 billion.

“So, since roughly the beginning of April, until May 6th, yesterday, we have approved financing for 50 countries under these emergency facilities,” he said.

On the conditions, Mr Rice said countries that apply for emergency funding should commit to ensure that the funds are for agreed upon purposes.

“Number one, specifically, we are asking member governments who receive emergency financing from the Fund, to commit in their letters of intent, to ensure that this assistance is used for the urgent purposes agreed under the emergency financing. These letters of intent are important, and they are published by member countries, and they are available for you and anyone to review on the IMF website.”

He added, “Two, we assess which public financial management anti-corruption, anti-money laundering measures. We want to ask members to put in place without unduly delaying the urgently needed disbursements under the emergency financing.”

He said the IMF has asked member countries to commit to enhanced reporting of crisis-related spending and to undertake and to publish independent, ex-post audits of crisis-related spending, to ensure procurement transparency by publishing procurement contracts, and by preventing conflicts of interests and corruption by publishing the beneficial ownership information of firms awarded procurement contracts.

14 COMMENTS

  1. These people should just leave us alone. It’s clear they are searching for potential victims to offset their debts in exchange of life time control. Lending to someone already in debt is a way of finishing them off when they are already down. I fear that they may even impose their dirty sanctions if we refuse their expensive loans outright.

    1
    1
  2. Lungu will only use these funds to further oppresse the opposition and shut down private media……

    Pleas consider these assults on democracy by lungu on top of his corruption before you give him any money….

    5
    1
  3. Mr President please pay retirees at PSPF. The last payment brought confusions. How come people who retired 4 to 3 yrs were left only those who retired last year are the ones who were paid, and PSPF is blaming the Government for this confusion. Please pay us we have waited for so long and others have died, and corona is here sweep all old retirees twapapata ba Lungu. PAY RETIREES.

  4. We are engaging with IMF. It wouldn’t be the end of world if we were not granted these funds as we have been doing very well so far fighting the virus without their help. However should the funds be granted it will make our work even easier. There are a lot of angered western governments who wanted Africa to be worst affected by covid so this is why they may want to act this way but we persevere with or without. Kz

    1
    7
    • You should not by any means be grated any funds as you are thief Fake KV KAWALALA, MBARE. all donors should desist of giving any money to this unaccountable govt

      6
      1
  5. Even the mighty Kaunda eventually broke down and went on his knees to the IMF. and all doors had closed around him…..

  6. They are requesting for funding to steal the very funds. They boast to have money knowingly they are broke chaps. What a shame! Zambia is not that we are a poor nation, we have bunch of lazy thieves of leaders. There is no need of begging IMF for funding. We have plenty of natural resources and even beside minerals, on Agriculture alone we can revive our economy and feed the whole East and Southern Africa. Edgar Lungu hss clue and the earlier is removed the better. PF must go!

  7. “Two, we assess which public financial management anti-corruption, anti-money laundering measures. We want to ask members to put in place without unduly delaying the urgently needed disbursements under the emergency financing.”
    That is the major cause of the delay.
    This will be an obstacle as long as ECL and PF are managing the national resources.
    In 2021 Zambians can put an end to this.

  8. On camera this Chilufya is busy saying he is fully stocked in everything but behind the scenes he is profusely begging to IMF so he can line his pockets like some of these hypocrites here who say they dont need IMF.
    You want IMF assistance but stealing money from Gold mining …what type of nonsense is this where you have Mumbi Phiri investigating PF gold scandal. I hope the IMF doesnt give these greedy selfish thieves.

  9. Madilu system – I have told these boneheads on here that Chilufya is a liar, he has no test kits but constantly lieing even allocating funds from GRZ is just lies

  10. @7 TheEngineer, Kaunda would not have had to go to the IMF, had he implemented sound fiscal reforms and ownership of ZCCM in the mid 70s and 1984. Zambian parastatals even then had nepotism. Corruption was rife too. Zambia had money but no real managers.

  11. On the conditions, Mr Rice said countries that apply for emergency funding should commit to ensure that the funds are for agreed upon purposes.
    “Number one, specifically, we are asking member governments who receive emergency financing from the Fund, to commit in their letters of intent, to ensure that this assistance is used for the urgent purposes agreed under the emergency financing. These letters of intent are important, and they are published by member countries, and they are available for you and anyone to review on the IMF website.”

    Fair request, PF administration needs to show leadership or time-out. Thoughtful gesture is used increasingly in today’s world as a marketing tactic to maintain good relationships with clients and prospective business partners.

Comments are closed.