The Zambian government and the International Monetary Fund have again failed to agree on terms of an economic reform programme which would have seen the country accessing financial assistance from the Fund.
Since 2016, Zambia has signaled intentions to get back on the IMF programme but significant progress has never been achieved.
In separate statements issued Monday evening, both the IMF and Ministry of Finance acknowledged that talks will have to continue although significant progress in policy talks has been achieved.
They both agreed that they will continue policy discussions at the appropriate time to finalise the timeline for implementation of the agreed reform package for the adoption of the ECF-supported programme.
“A team from the Ministry of Finance of Zambia, led by the Minister of Finance Dr Bwalya Ng’andu, and an IMF delegation, led by Mr. David Robinson, continued discussions during April-May in a second virtual mission on a potential IMF programme in view of progressing Extended Credit Facility (ECF) discussions. The Ministry of Finance and the IMF have reached a broad agreement on the macroeconomic parameters, fiscal targets and policy objectives,” the Ministry of Finance said.
“Significant progress was made in detailing the policy reform agenda to restore public finance and debt sustainability, while at the same time securing Zambia’s development objectives, and ensuring social protection for the most vulnerable. It was jointly agreed that Zambia and the IMF will continue policy discussions at the appropriate time to finalise the timeline for implementation of the agreed reform package for the adoption of the ECF-supported programme,” it said.
“In the meantime, the broad agreement obtained on macroeconomic parameters and fiscal targets will allow the authorities to progress in the technical preparation of debt restructuring talks in the context of the Common Framework as well as with the commercial creditors.”
Minister of Finance, Dr Bwalya Ng’andu stated: “We thank the IMF for the productive engagement and look forward to continuing discussions on the policy package implementation to ensure Zambia’s return to growth and debt sustainability. The reform path is clear. We are committed to securing an IMF programme which would support Zambia’s structural reform efforts to strengthen our response to the shocks caused by the Covid-19 pandemic and to ensure a solid foundation for a prompt and inclusive economic recovery.”
The Zambian authorities have since expressed their gratitude to the IMF for the constructive, fruitful and forthright engagement.
The IMF said in a statement that it’s mission has continued discussions with the authorities during April-May on their request for an Extended Credit Facility (ECF).
“Building on the earlier discussions in February-March, there was broad agreement on the macroeconomic framework. Notable progress was made in detailing the key policy measures to address the macroeconomic imbalances currently facing Zambia and to enable a return to sustained growth with enhanced fiscal space for social and development spending.”
It said, “The Zambian authorities reaffirmed their continued commitment to reforms. We look forward to continuing ECF discussions as key measures are taken. Staff express their gratitude to the Zambian authorities for the constructive, determined, and frank engagement.”
“Zambia, IMF again fail to agree on bail out terms, talks to continue”
What are the IMF’s bailout terms? The people need to be presented with them, and they need to be voted in by referendum. Or the people should preserve the right to break with these contracts at any time of their choosing. The time that politicians can sign a way the next generation’s future behind closed doors is long gone. And I don’t like the smirk on the squat fellow’s face.
Bwalya Ng’andu not exactly looking happy. His job is to ensure that chickens lay eggs for people to eat.
THIS IS PURE AFRICAN STUPIDITY , SHOW ME WHICH AFRICAN COUNTRY THAT HAS DEVELOPED OUT OF THE IMF OR WORLD BANK BAILOUT ,
WHAT WE NEED IS TO DEVELOP NEW ECONOMIC STRATEGIES GUIDED BY CLEAR NATIONAL ECONOMIC MODELS NOT THIS CHIPANTEPANTE .TELL ME WHAT SENSE IT MAKES FOR ZAMBIA TO BE BEGGING FOR ABOUT USD1BILLION TO USD1,2BILLION SINCE 2015/2016 TODATE , WHEN AS A COUNTRY ARE ABLE WITH SERIOUS LEADERSHIP ABLE TO WITH JUST MAKING A 2% SAUDI ARABIA ANNUAL FOOD IMPORTS OF ABOUT 114BILLION , ANNULLAY ZAMBIA CAN EARN USD2,880,000,000.00.
WE DONOT NEED THE FAILED UNZA LECTURERS FAILED MERE ACCDEMIC ECONOMISTS , WE NEED PURE INNNOVATIVE DYNAMIC THINKERS ND DOERS AND LISTENING LEADERSHIP WITH THAT SAID EVEN STOP DRAFTING THE 8NDP, LET THE NEW GOVERNMENT COME AND DO ITSELF
IMF should not bail out Zambia at all. In fact put sanctions on lungu and hus minions for defaulting bond coupon payments as well as destroying the economy and putting misery on the general masses
Do you surely expect IMF TO agree to anything at this time? They will wait until after elections. They may then continue discussing with the same government with a fresh mandate to rule. They may open fresh discussion with a new government in one comes into power.
IMF should NOT have a deal with PF gov’t which has behaved like an irresponsible teenager with their 1st credit card.
It is simple really.
Just return all the money stolen and account for the Euro bonds that vanished in thin air.
Then tell us how much you have borrowed from the Chinese, and where that money has gone.
The person who sold the suit to the man on the far right shall never see heaven. Umuntu kwati fat albert waku chinsali sure.
Really laughable…only a foooool would give these thieves a billion dollars
WELDONE IMF !!!!!!!!!!!!!!!!!!!!!!!!!!
PERHAPS GOVERNMENT WILL LEARN CORRUPTION DOESNT PAY
THE TR0LL IS LOST FOR WORDS AT LAST !!!!!!!!!!!
CAN ONLY COMMENT ON A SUIT >>>>>>>> LOOK CLOSER TO HOME IWE
It’s strange that IMF believed it could reach a Programme Agreement with an untrustworthy,Corrupt, incompetent and Visionless ECL Govt. When ECL says he is turning Right he is actually turning Left. When ECL talks about free,fair and credible Elections behind the scenes he is actually rigging the Elections. When “The Zambia we want ” Alliance comes into Power then the Fund has a better chance of negotiating a Bailout Package with a Govt with intergrity. An Alliance Govt which believes in Constitutionalism,Rule of Law, Good Governance and respect for Human Rights. Another 5 years under ECL is as good as committing suicide for Zambians. The writing is on the wall.
Thank you IMF. PF third term does not make sense you failed to Forecast the outcome. Now they’re telling us they deserve third term, No way José.
PF time out
People of Zambia dont worry when HH becomes President in August we shall strike a deal with the IMF. Mwisakamana
Honestly, this is dispicable from the IMF. For those that are celebrating this, let me explain to you what the IMF is – this is basically a Fund that serves as an investment or insurance policy, Zambia contributes to the IMF. Zambia is being denied a bail-out package because of the rules of the IMF and its autonomy. I believe that Zambia should opt for a different fund, if possible, begin a sovereign fund with an independent investment bank like BNP Paribas or JP Morgan Chase. This is ridiculous. This has nothing to do with PF or UPND, Zambia eventually needs to access this fund.
Sorry IMF, nothing will come out of these corrupt thugs until Aug. How do you negotiate with a person who owes you money who talks with his mouth full yet telling you he has no money?
IT HAS EVERYTHING TO DO WITH THE PF GOVERNMENT AND ITS HANDLING OF THIS ECONOMY
GO TRY ELSEWHERE AND SEE THE SAME ANSWER
Why was IMF wasting time negotiating a Programme with a Corrupt, incompetent and untrustworthy ECL Govt we wonder? The Fund knows that the PF has been looting Govt Resources thru Corrupt deals beneficial to PF Leaders only. The ECL PF Govt has been printing money to buy votes and borrow heavily to rig the 2021 Elections. How could the Fund waste time negotiating with these looters and fraudsters? We knew from the outset that these PF Crooks couldn’t successfully negotiate a Programme with IMF.
With all the free cash handouts and empowerment funds being dished out by lungu and his gang……..
are you sure you need IMF bailout ??????
No, PF don’t need no bailout. They have plenty of money………they even had to put a stop to their thugs posting videos with bundles and bundles of money, free money…..
Continue negotiations until elections then
Decide if they can meet your conditions.
Let all ministers account for their accumulated wealth.
This is like your friend asking you for a loan in the bar whilst he is giving huge tips to the waitresses and buying drinks for everyone.
PF is reckless
No one is forcing you to have a programme with the IMF. You took over a healthy economy with no debt and growing at 7% in 2012 and ruined it through corruption and you expect to be given more money for your pockets.
IMF was playing Diplomacy wit these Dunderheads at Ministry of Finance.The Fund was pretending to be negotiating with these Corrupt Buffoons. The Fund doesn’t trust this ECL “chameleon ” Govt. The Fund cannot trust ECL to implement its Conditions and to use the Funds disbursed for Agreed purpose. Should “The Zambia we want ” Alliance come to Power it will easier to negotiate with HH and UPND Alliance Team becoz these Alliance People have intergrity and are financially and Economic Literate compared to the PF Thugs and Looters.
Ba PF mwaona manje, mwatiletelela ba mambala imwe.
For IMF to give a package, you must demonstrate capability. With the way things are, these talks could just be a polite PR stance from IMF, these talks are since 2016 with no result, who does that. I think they are waiting for out and in
Here’s a response I’ve just read from another reader callling themselves No3rdTerm;
People let’s be serious. Here’s the scenario, would you go to a prison, look for a thief who is corrupt or has embezzled or stolen money, and try to negotiate to give him/her more money? That’s what we seem to be expecting from the IMF/PF talks. That IMF will suddenly see the light and believe PF has changed when they can’t even disclose to them how much we REALLY owe China. Until PF leaves office, we are doomed. Even if they agree, the conditions will be so stringent that the cost of borrowing will be so high as May have to pay intermediaries who will manage the funds on behalf of government. Vote them out of office us our only way out of our economic misery
This photo though….there is always a funny caption every time I look at it. Its like these IMF Economists are wondering what this technocrat is doing with dull thieves like Lazy Lungu tarnishing his CV.
WHY ARE THESE STATEMENTS MADE IN INCOMPREHENSIBLE LANGUAGE.
IT IS OBVIOUSLY TO OBFUSCATE.
WHY NOT SAY THEY HAVE FAILED
Kawambwa-cassava strategy is the way to go. PF do the Kawambwa-cassava strategy on minerals and deeply participate in mining industry. This approach will enable you reward students from 11 universities that have endorsed ECL and PF. HH take this endorsement seriously because in most cases students are normally with the opposition parties. Sadly to say so, The game is over. IMF approach no solution to make Zambia rich.
This was just a PR exercise by the IMF. The Fund knows very well that they can’t reach a Bailout Package Agreement with the Corrupt, incompetent and untrustworthy ECL Govt and b4 August 12 Elections. Already the ECL Govt has defaulted on its Eurobond loans and is splashing Money to win the 2021 Elections. These Actions will lead to further macroeconomic instability in Zambia. The Fund is hoping that HH and UPND Alliance and “The Zambia we want ” Alliance wins the August 12 Elections. These are Economic and Financially literate Managers that IMF can negotiate with a viable Programme for implementation. The current Corrupt and incompetent ECL Govt doesn’t understand how IMF Conditionality works. Time will tell.
IMF will not be voting, As of now PF will take Luaska province [ infrastructure development ], Copperbelt [protecting mining jobs], Luapula[ seeing new development] Northern, Muchinga and Eastern too difficult for ECL to lose, notable improvements in Western, North western and Southern provinces.
Zambia does not need these thieving whatever you want to call them. There is nothing IMF can offer us. They will keep coming back because they need us more than we need them. To hell with their fake money. They print out their fake dollars at any time but they want to tie us up to some silly program designed to compromise our sovereignty and aimed at free access to our resources. Why are they not demanding economic reforms to the US who owe China trillions? Uko, atase! Why is the world not in recession considering most major businesses have not operated for over a year now? How come central banks in Europe and America suddenly have so much cash to keep businesses closed for a year and continue to pay people for sitting at home?
What bailout? IMF only sell debt. Name any country on this planet which has been given free money from these loan sharks? They need us more than we need them. Some have even resorted to campaigning ati Zambia forward. Imagine?
What bailout? IMF only sell debt. Name any country on this planet which has been given free money from these loan shark5? They need us more than we need them. Some have even resorted to campaigning ati Zambia forward. Imagine?
I think IMF are sponsoring this site… why do you keep moderating my comments?
IMF needs Zambia more than we need them. Please continue to refuse lending to us, we need to find our own money. We thank you for not lending us money that we don’t need.