Thursday, July 18, 2024

Zambia seeks IMF funding to help soften impact of Covid-19

Share

Zambia has applied to the International Monetary Fund (IMF) for a COVID-19-related rapid credit facility.

Zambia was already wrestling with a growing public debt even before the new coronavirus outbreak forced lockdowns across the globe, delivering a big blow to demand for raw materials.

The Ministry of Finance said in a statement that discussions with the IMF on the rapid credit facility are continuing.

The IMF has approved requests for emergency pandemic aid from 50 of its 189 members for a total of about $18 billion, a spokesman for the Fund said on Thursday.

The IMF in April forecast Zambia’s economy would contract by 3.5% in 2020, down from growth of 1.5% in 2019, because of the impact of the coronavirus pandemic on the global economy.

Zambia’s economic activity has also been hampered by widespread power shortages.

Health Minister Chitalu Chilufya said the number of new coronavirus cases in Zambia rose to 252 on Saturday and deaths from the highly infectious respiratory disease increased to seven.

And the Ministry of Finance says it has started the process of shortlisting financial advisers to help reduce its debt load.

The Ministry says it has also closed a call for tenders for financial advisers over its debt and started the process of shortlisting and selecting the winner.

It said a statement will be issued once the entire selection process is complete.

The Zambian government’s external debt stock jumped to 45% of gross domestic product (GDP) in 2019, up from 37% in the previous year, while the total debt stock is estimated at 89%, according to World Bank data.

29 COMMENTS

  1. Very much expected when you have possibly the worst recession in 300 years waiting to happen. This is a global phenomenon and no one is shielded. We can only work together to try and reduce impact on vulnerable. This is our priority as government. To protect lives while trying our best to protect the economy. However let me make it clear that lives come first. Our demonic friends in diaspora would want us to concentrate on the economy at expense of lives but we say no to such evil nonsense. I would rather spend time with family than be rich.kz

    1
    24
  2. Should read P.F applies for 2021 campaign funding from I.M.F, cause those of us who are not daft know the truth.
    What happened to the U$D 19 Billion these K0lway’z begged for & got in the past few years.
    Is that the cash fossil Ch!kwanda was recorded giving to his fellow P.F brutes for campaigns, during the past election?
    MULANDU SU WOLA, WINA AZALILA!!

    15
  3. When lies catch up with pipo this is the result advise was given but pipo were called bitter lets hear u say it again

    22
  4. Hope the IMF does not give this money…..
    Did the baboon in statehouse not say the IMF can go we are going to scrap the money from some where……

    The chickens have come home to roost….

    21
  5. Why borrow money IMF instead of going to court to demand the donated money and materials withheld by PF?

    16
  6. @ TheEngineer, actually I think the actual words were ” The can go if they want, we don’t need them.” We even kicked their resident representative in the back side and sent him on the way

    16
  7. You have just sold your soul to the d3vil. Now wait for the conditions…subject to covid 19 vaccinations, sale of mines to their preferred bidders. Press freedom, etc. We know things are going to be tough for Zambia but the same applies for every other nation on this planet. Secure your assets and live another day rather than selling your soul for a quick fix.

    5
    3
  8. Quite right, we do need this facility. It should help ease the pressure on the fiscus and the exchange rate. But we need a robust structure to move away from capital expenditure and projects for now. If we focus on projects that will bring in revenue like KCM, Kabundi, ZESCO new projects, ZCCM Gold, etc we should increase our revenue stream.

  9. The effects of heavy borrowing can never be hidden.
    Some people think IMF will come because of the pandemic, this level of willful ignorance will never be understood.

    11
  10. This country is in dire straits and we will cry for a long long time especially if Govt policies are inconsistent as is always the case.

    we are in deep trouble indeed..

  11. Whether we get funds or not, the main problem still remains unsloved – our house has no solid foundation and the walls shall keep cracking. How long are we going to keep mending cracks?

    It will be bitter if help is not granted because it is the only way we are going to learn to reinforce our foundation. We need to draw lessons from history and avoid applying the same solutions that failed in the past. We cannot continue to ignore the fact that the solution to our economic problems lies in the proper management of Zambian resources – both human and material.

    12
  12. You rebuked IMF before and now you have realized how important they are. These PF rats they don’t think properly. I can assure you these guys want loot the money before they leave office. PF must go!

  13. The PF maggots think IMF is a group of good hearted- christian mulungus. IMF is a business, & a hash one. You cant be telling them on one side, to go to hell, chase the IMF funder ambassador(US), boost about sovereignty, be corrupt, and on the another hand, expect them to hear your sufferings. How is this possible?

    11
  14. IMF should demand total accountability to previous funds obtained in the past including the stolen funds now proved through convictions secured in courts of law. In fact, IMF should wait until after elections that should be free and fair before consideration of any negotiations.

    11
  15. PF and IMF BAILOUT
    First they used Felix Mutiti-FAILED
    Next it was Margarete Mwanakatwe-FAILED
    Now its Bwalya Ngandu – ?????
    Despite the changes in the Finance Minister,what is constant is ECL,PF and Rampant corruption.
    Its very likely that Bwalya Ngandu will also fail.But it will not be his fault.
    We all know the problem.

    15
  16. PF think IMF don’t know them for the thieves they are …meanwhile Chilufya is busy saying he has everything..what happened to the contingency fund? The lies are catching up.
    They have eaten everything including the money for rainy day and drought….where are they taking all that markup from crude oil which has reduced by 70%.

  17. Zambia today recorded Zero convid-19 after testing 286 people in Lusaka in the Last 24 hrs. Joke. Test atlest 2000 in each province then come up with a total figure as a country. You have a lot of donations you can manage to test even 3000 per day. Not 200 then you even come to anounce that you have zero. No need to get money fm IMF, where are you taking the donations? PAY RETIREES AT PSPF.

  18. Don’t give lungu any money so he doesn’t use it to trample on people’s democratic rights and shut private media…….

    I will be writing to the European parliament and my MP about the misuse of my tax monies if any consideration is made regarding giving lungu money…

  19. Try to beg the likes of Bill Gates,warren Buffet or Abena Jeff Benzo may be they can bail out unconditionally.

  20. We need the IMF facilities The COVID 19 pandemic has had some severe impact on certain sectors of our economy in the few months of lock downs that also affected the business cycles global especially this period of April and march in which most companies and revenues could be realized. Take for example in the tourism sector arrivals there have collapsed, social distancing measures and lock downs have made it difficult to tour. The economic sectors have been starved of business and hence the required liquidity and not to speak about exports to our traditional and other markets that are in the same lock down situations as a result of corona
    Any Zambian of economic view will support this applications and…

  21. and it should be approved as rapid as in the IMF rapid financing facilities because economic growth and activities will fall resulting in immediate external financing and fiscal financing gaps So we need the Financing facilities from IMF to help not only restructure our debt but also most importantly reignite the Zambian economy again since the COVID 19

  22. Well the appointment of those advisors is an opportunity to review the whole entire Gov funding management programme including Investments It should review reporting on purchase and management of treasury securities and liquidations and how the information is currently aligned between funding and Investments management units like BOZ treasury window At any particular time I should simply to Ministry of Finance website or Secretary to treasury on see the marketable and non marketable securities and how they are sitting on charts and graphs to the last ngwee
    In the same way I should be able to segment the principle and interest and run term sheets. Its an opportunity to put proper the…

  23. They will start buying teargass and recruiting pf cadres, therefore please don’t give money to PF government, those are not good people.Remember last time Edgar lungu chased you.They may use that money to close private medias

  24. the Treasury and debt management and enhance the reports for public not to speculate much as I am reading from the comments above There must be link and report on securities proceeds and liquidations in real-time for people to know the status and performance

    So the choice of those advisors must be proper and terms written to ensure Treasury and debt management is concluded now Its not as simple as advertised and shortlisted

  25. You need money from IMF that you didn’t work for but you don’t want to pay us our retirement packages that we worked for , what the hell is going on iwe KZ?

    1
    1

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading