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Alba Iulia
Thursday, June 30, 2022

IMF deal will not happen by end of June, Government still needs financing to fund Staff Recruitment

Economy IMF deal will not happen by end of June, Government still needs...

Finance and National Planning Minister Situmbeko Musokotwane has said that the country will not be able to get on the 1.3 Billion United States Dollars International Monetary Fund (IMF) program by the end of June 2022 as initially anticipated.

Dr Musokotwane said that with the current debt crisis, the country still needs financing without which government would not be able to do certain things they have done such as the hiring of teachers, and health workers among others.

The Finance Minister has also defended the government’s decision to borrow from the IMF stressing that borrowing from the international lending institution attracts an interest rate of around one per cent and has a grace period of 10 years before starting paying.

The Minister said that the only way to resolve the country’s debt situation is through debt restructuring.

Dr Musokotwane said that the country is a step ahead towards resolving the unsustainable debt and that the government remains hopeful that after the discussions with the creditor debt relief will come and that the country will get some financial assistance from the International Monetary Fund as well as the World Bank.

Yesterday, Dr Musokotwane said that Zambia has been invited to participate in the Creditors Meeting which has been organized by the Paris Club this Thursday on the way forward pertaining to debt restructuring.

He said that the Meeting will take place in France, but that the Zambian delegation will attend virtually.

19 COMMENTS

  1. Situmbeko isn’t serious. Why isn’t he explaining how the foreign has moved from US$12.7BN as at August 2021 to US$17.7BN? How has the US$5.OBN that the UPND has borrowed within six months been utilized?

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  2. The UPND government is not transparent with the country. It’s clear that the IMF director for Africa, who visited the country yesterday, has told the president off. He wanted a shortcut, but IMF was firm and did not budge on the conditions. So, no loan! Sounds like Edgar China Lungu all over again. Sorry Mr President, you FAILED!

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  3. I think it is becoming a point of frustration hearing about the IMF deal. At this rate, the Zambian Government is better off going to the Chinese Government where they will be treated with dignity. Rolling our a red carpet for all members of staff from IMF is simply sad to see. It is fine to request financial assistance, but never lose your dignity while doing this. I encourage the Government to simply state that they have reached a point of frustration and simply ask the Chinese Government to freeze their loan (make some concessions too in revenue sharing projects) and settle other commercial debt as and when it falls due. Zambia really does not need any IMF program and I would encourage Zambia to exit any interaction with the IMF.

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    • Exactly. Have a serious discussion with the Chinese instead of being like one who finds himself at road’s fork and can’t decide which branch to take. Maybe there’s something we’re not being told.

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    • Highly suspicious, it could also be some misplaced sense of bravado to prove that one has more gravitas than a predecessor and can land a big deal. I think governance is not about that. There is more dignity in simply walking away and opting for an internal solution.

    • Here’s a better idea. Don’t borrow money you can’t pay back. NOTHING in life is free. Dealing with China won’t solve the problem. China burdens countries with worthless, useless infrastructure projects all under the guise of being Africa’s “friend”. China isn’t, hasn’t been, and will never be a real friend and partner to Africa. China only wants unfettered access to Africa’s raw materials and natural resources. China is just the other side of a bad coin.

  4. Maybe we haven’t full filled one of the conditions… legally decriminalize that one thing which GRZ has not been specific.

  5. GRZ has a tendency toward the Western world and none grade seven graduate demands that cannot reciprocate itself.

    GRZ wants to do business with countries which have a strong union, formal sector, human rights and vibrant stock market. All of these are good sources of taxation.

    GRZ needs to start to advocate for a strong union, a strong formal sector and Mom and Pop businesses for the IMF to take them seriously.

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  6. GRZ has a tendency toward the Western world and None grade seven graduate demands that cannot reciprocate itself.

    GRZ wants to do business with countries which have a strong labor union, formal sector, human rights and vibrant stock market. All of these are good sources of taxation.

    GRZ needs to start to advocate for a strong labor union, a strong formal sector and Mom and Pop businesses for the IMF to take them seriously.

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  7. Dear Minister put the idea of borrowing from IMF on hold go and ‘borrow’ the same amount from the mines…the caveat will be that you will manage their tax at a revised rate until the 1.3b is fully self wound down further the ‘loan’ should attract zero interest on it so that you recover quickly…. then you can revisit the tax payable….but ofcourse whilst in opposition you assured the nation you were better negotiators and the imf would come on board…..

  8. The USD 5 billion is the Chinese debt, that has been covered all this long? There is nothing sinister here, the Chinese has agreed to come on board now that what is owed to them is being disclosed. Let them negotiate wi all parties involved to find a lasting solution, you can not negotiate with the IMF and leave the Chinese out, that is not gonna work. All in all let us support this robust initiative for the betterment of our economy.

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  9. The USD 5 billion is the Chinese debt, that has been covered all this long? There is nothing sinister here, the Chinese has agreed to come on board now that what is owed to them is being disclosed. Let them negotiate with all parties involved to find a lasting solution, you can not negotiate with the IMF and leave the Chinese out, that is not gonna work. All in all let us support this robust initiative for the betterment of our economy.

  10. Let me get this straight, you promised that you are going to employ teachers and health workers on monies that you have not seen? Look Stumbeko, we have been down this road before were IMF told Chiluba to privatize all parastatals as a condition for an IMF loan. Unfortunately the person you need to asked how this ended will not tell you the truth because he came out very rich while masses died.

  11. We seriously need plan B. In October we were very sure the loan will be given in June. Thus the recruiting mania. How can we make a huge plan on borrowed Money? I hear IMF refused to give us loan due to poor governance. Oppodion leaders bring locked up on trumped up charges. Others without trail. They gave us 3 months to improve. Thus the change at ACC

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