Home Headlines IMF Confirms No Covid-19 Relief Package For Zambia Because Of Higher Debt

IMF Confirms No Covid-19 Relief Package For Zambia Because Of Higher Debt

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Each spring, thousands of government officials, journalists, civil society organizations, and participants from the academia and private sectors, gather in Washington DC for the Spring Meetings of the World Bank Group and the International Monetary Fund. At the heart of the gathering are meetings of the IMF's International Monetary and Financial Committee and the joint World Bank-IMF Development Committee, which discuss progress on the work of the IMF and the World Bank Group. Also featured are seminars, regional briefings, press conferences, and many other events focused on the global economy, international development, and the world’s financial markets. This year’s Spring Meetings events will take place in Washington, D.C., April 17-19, 2015. Photo: Simone D. McCourtie / World Bank

The International Monetary Fund has confirmed that it has not processed Zambia’s request for emergency Covid-19 assistance because the country has unsustainable levels of debt.

IMF Director of Communications Gerry Rice confirmed that the Zambian authorities have requested emergency assistance from its international partners, including the Fund in addition to an earlier request from Zambia for Fund support for their broader economic reform program.

Dr Rice reiterated that any IMF financial support, including emergency financing, is contingent on steps to restore debt sustainability.

He was speaking during a regular virtual press conference with Journalists from across the world at the IMF Headquarters on Thursday evening.

“As indicated in last year’s Article IV consultation with Zambia, and as published in the report, there, for you to look at, Zambia’s public debt is on an unsustainable path, under current policies, as the Minister said in February, and we note the government’s commitment to restore debt sustainability through fiscal policy adjustment and debt management. So, that’s where it stands,” Dr Rice said.

“Let me also say this to try and help and explain the context. It’s the Fund’s role to help countries address their medium-term viability, economic viability, and we are always and everywhere prepared to perform this role. That’s what we do,” he stressed.

“Our rules are there to help us keep a laser-like focus on designing programs that will work to help the country escape its problems, and they reflect decades of experience, really, of what works and what does not. So, I say that because particular care must be taken in unsustainable debt situations. Why? Because a poorly designed program can make matters worse for a country and its citizens.”

He added, “So, it’s important to get that right, and with strong commitments and actions, by a country and its creditors, a way forward can be found, which we can support, and, again, we always try to make that happen as soon as possible. You know, I won’t speak for other international institutions, but I know they are as dedicated as we are to resolving problems, and, again, more recently, in the case of Zambia, the authorities have expressed their intention to restructure Zambia’s debt, and, in this context, to hire debt advisors.

“So, the bottom line is, on all of that, is we continue to have active discussions with the Zambian authorities on their economic response to the pandemic, as well as their medium-term macroeconomic objectives and policies.”

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39 COMMENTS

  1. You can’t give more maize to baboons in a maize field. Well done IMF. Next default on Euro bonds then you will see how life will become extremely difficult. KK’s 90s will look like a walk in the park….
    Did we not warn you?

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  2. Whet the IMF is doing is to let the Zambian people reach rock bottom and open their eyes for them selves and chase the baboons

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  3. There you have it now. Govt what is your excuse now. Kaloba too much things must change now. Everything hidden will always be revealed, more from this inept govt is yet to come.

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  4. This is what the did to the once mighty KK until he was on his knees.
    You can run but you can’t hide Soon the whole world will see you pregnancy

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  5. That Debt has been used for positive development. Hospitals have been built, Schools, Roads etc and the Country is better now in terms of infrastructure that it was 10 yrs ago. Why cant they look at the positive development rather than wondering about debt. We shall repay from our gold reselves. Surprisingly you will never here them recommend the gvt for more hospitals which has been built as long as it is not them who have financed. Shame to these imperialists.

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  6. When the news broke several weeks ago that IMF was not going to extend the service to zambia and other countries like burundi, I said on this blog that debt and bad governance where the reason. This infuriated the PF faithful.
    Now the truth, which I knew very early on, has come out for the general public.
    So now the Pf faithful will do what they are best at: insult and try to discredit the IMF. Freinds from pf need to learn two things: Being honest and to argue from facts. You cant live on lies, fabrications and insults.

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  7. Thieves and looters will cry….this is now becoming the new normal for PF bandits to be denied kaloba…..Suntwe Makaka gumu gumu pompwe Kaizar Zulu will now starve to death….Thank you IMF keep up the good works….let PF bandits pay back all the money they’ve stolen before Zambia can be given any Kaloba

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  8. Tell them

    “…..Why cant they look at the positive development rather than wondering about debt. We shall repay from our gold reselves….”

    And if you did not find gold ? Do you even know how much gold is there ?

    Ati

    “ look at positive development “

    Your reasoning is like a job seeker buying an expensive suit for an interview and expecting to be given the job based on the suit

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  9. Very good ,

    don’t give lungu any money , he will use it to shut down media and pay his thugs to invade radio stations……..

    We have been very busy spamming IMF , world bank and western Parliaments about lungus assults on democracy using the money they give him

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  10. Sometimes your enemies can give you the best advise than your closest of friends, when double H was advising them on debt, even the dullest in pf responded. Sometimes you need to sit down and take advise especially when its involving the national at large. Chiluba thought he was clever until he left office and all his sympathizes left him, he died a lonely man, i guess people dont learn anything from the past, TIME IS THE GREATEST ENEMY we just dont have enough time and will never DO.

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  11. I told the PF government that IMF can’t give you loans, and some PF cadres in their usual manner with emotional reaction insulted me. Who can lend a borrower with track records of borrowing everywhere? Some loans are not even disclosed, we shall only discover them when your Bally and my Bally takes over.

    PF must go!

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  12. Has the IMF done such a thing in the history of this country from independence? If not, then it speaks volumes about the way this regime is running things in this nation

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  13. We have some good news for the people from the devils cult. Unfortunately for covid, it affects everyone no matter the grouping you worship.

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  14. @kci and your fellow minions you are on record calling institutions like IMF imperialists, what made to go and beg from them? why didnt you go and ask from china? and kci remember when we told you that what decisions you make your pf cadres dont shop from different shops , we all buy goods at the same price, so when you were singing ati alalila owee chikonko mwikata, you thought those who voted for upnd will buying from different shops at higher prices than you? busy sing ati balya bambi bali muchibe bola naikosa, apa pave bola yakosa for everyone including you a stauch pf cadresian.

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  15. Bally eze kukamba ati no he is bitter, now we are all tasting the bitter truth whether pf or opposition.

    BENZ= BALLY ENA NII ZIIIII.

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  16. chiluba , mulogoti ,Bean tata, at one point thought that they where clever until they left the office. wait the time is coming and the time is near ,people will die with heart attaches, BP, and struck. IMF WELL DONE .

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  17. Looks like some people,PF leaders, cadres and their economists-for-hire owe HH a big apology. He consistently warned us that the way PFwere borrowing would land the country in unsustainable debt! They in turn consistently insulted him, called him bitter and assured us they had a sound debt servicing plan, sink fund etc etc. Now the chickens have come home to roost and its plain for all to see who was taking the Zambian public for a ride. What a mess PF has put us in!!!

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  18. Why are we begging the IMF when his Excellency the President Dr Edgar Chagwa Lungu told them to bugger off. The IMF has been very clear all along emphasising the importance of fiscal discipline which the PF has not heeded. Who with 5 senses lend money to a thief?

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  19. It doesn’t make sense to ask for help frm someone u chased frm yo hse. That’s shameful. Someone chased the IMF rep in zambia and then u go and ask for help frm them.wats zat nw.

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  20. We have stated it before on this forum that Zambia’s financial reputation is in tatters from world reputable financial markets including IMF and World bank. There reasons behind this poor creditworthiness in the eyes of the world. Corruption, misappropriation of borrowed funds without corrective agenda has been the most depressing picture of poor governance in the eyes of lenders and donors. So, when we criticise that Zambia is not an island and that owners of funds will react one day is precisely what we projected in our critic. Government without a realistic plan is a government without a plan. However, as usual we heard voices from those in support of this corrupt government that we were jealous and that we are not in power. Lies have short legs and when truth catches up, the emperor…

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  21. the emperor is seen naked. We hope PF regime will not give an excuse of this poor rating due to opposition reporting them to IMF on corruption and poor governance, even if IMF politely cites unsustainable levels of borrowing as the main reason of declining to Zambia’s request.

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  22. IMF is no help to any nation but to its masters who control the system, loss of jobs in the nation take over industry come in to control all the resources cause unrest in the nation take away money for hospitals the list is endless.
    Better to find another source than the IMF monster, how Zambians died in the 1990s just because of the borrowing from IMF.
    Anyone trying to get money from this monster is a joke, and go and ask MMD government.

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  23. The money to fight covid-19 is interest free but you are not credit-worthy if you are already drowning in debt. Zambia is not on the list of countries that qualify for this type of support.

  24. @Kaiser, We love your analysis, please, please do not disappoint us brother!! Or are you pumping sense into IMF, we should just hung in there? or you are having transparency issues like…..?

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  25. Thank you IMF for saving us Zambian tax payers from having to pay back money that would have ended up in the pockets of insatiable PF bandits.

  26. Hitler, Genocide organisation.

    It’s to fight z pandemic. See, they do want to kill resource rich Africans. Look at the countries they have rejected to help, Zimbabwe, DRC Zambia, it’s a straight line clean out.

    Never mind, we will beg China………they caused this!

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  27. And HE said, “There is no country in the world that doesn’t borrow”.
    And that is the guy that they sing about like a god in PF circles day and night and in their dreams. The rest of the country just says, “Real jokers, these fellas!!”

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  28. This is a blessing in the open, Zambia owes China and Europe. No need to get more money that only the rich and elite will pocket. IMF would run Zambia to the ground like the Chiluba times. Let someone else bring development and not borrowing like Sata did.

  29. I hope Zambians can see through these m0nsters. The IMF is a loan shark praying on smaller economies with abundance of resources to impose thier conditions to ensure you never ever develop. They are not finished with us yet, watch how they will dangle the carrot at a later stage. Zambia is blassed with resources and this is a blessing in disguise. Let our freedom dictate our future.

  30. No stories excites the deadz groupware more than this.

    They salivate and *** at themes of news that wear this countenance an take this shape.
    The abysmal International Monstrous Force just got jealous when Government looked to China. Nothing more.
    This group of white niggaz got us to sell our valuable assets through crazy short FTJ and mean gluttonous deadz h².

  31. @nshilimubemba
    Great piece.
    Don’t mind fainthearts that were born yesterday. History is no friendlier to the deadz because their b1oody suckling god handed the Imperialists Monstrous Fellaz our assets at the expense of the great incomparable citizens of this country.
    Never again.
    Cursed are those gullibles who don’t get it. Leave the merciless Imperialists Monstrous Fellaz SAP alone.
    In case you were born yesterday SAP, aka Structural Adjustment Program was a swindle scam drafted by IMF devised to take over your mines from which h² benefited. They managed whilst we slept.

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  32. THE US CAN PRINT FOUR TRILLION DOLLARS TO SUPPORT THEIR PROFLIGATE LIFE STYLES BUT ZAMBIA CAN’T GET ASSISTANCE TO FIGHT THE CORONA VIRUS.
    SURELY ZAMBIA NEEDS TO BE HELPED BECAUSE OF ITS ALLEGED DEBT BURDEN
    AND ALL THOSE ZAMBIANS HAPPY THAT THE IMF WILL NOT ASSIST ZAMBIA SHOULD BE ASHAMED OF THEMSELVES
    THE PF GOVERNMENT HAS BROUHT DEVELOPMENT TO ALL PARTS OF ZAMIA NEVER BEFORE WITNESSED AND YOU CAN SEE IT BUT THE HATERS CLOSE THEIR EYES BUT SEE THE THE BENEFITS WHEN THEY OPEN THEIR JAUNDINCED MINDS AND ARE SHAMED

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