Thursday, May 30, 2024

IMF Managing Director Kristalina Georgieva Statement to the Financial Community on Zambia

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Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), issued the following statement about Zambia to Members of the Financial Community:

“The Zambian authorities have been implementing an ambitious economic reform program supported by the IMF, which aims to restore fiscal and debt sustainability, create fiscal space for much-needed social spending, and strengthen economic governance and transparency. Zambia’s economic reform program is supported by an SDR 978.2 million (about US$1.3 billion), 38-month Extended Credit Facility arrangement, approved by the IMF’s Executive Board on August 31, 2022, and by assistance from multilateral and bilateral institutions. In October 2023, complementing the broader reform agenda, Zambia agreed on a memorandum of understanding with the Official Creditors Committee (OCC) under the Group of Twenty (G20) Common Framework that would deliver a debt treatment by official creditors aimed at restoring debt sustainability consistent with IMF program parameters.

“Building on this progress, and following several months of constructive discussions, the agreement reached between the Zambian authorities and the Steering Committee of the Ad Hoc Creditor Committee of holders of Zambia’s Eurobonds marks a significant step forward. The terms of this agreement have been assessed by the Fund staff as being in line with the parameters of the IMF-supported program taking into account the confirmation by the OCC to the IMF and to the Authorities that the agreed terms are consistent with the comparability of treatment among creditors. Together with the full implementation of the IMF-supported program, the successful implementation of this agreement will provide significant external debt service relief and further contribute to Zambia’s efforts to restore debt sustainability.

“To capitalize on this momentum, rapid completion of the debt operation with high participation would be vital for the success of the program. In parallel, the authorities continue to advance discussions with other external private creditors on a comparable treatment. This collective effort is key to supporting the success of Zambia’s debt restructuring efforts under the G20 Common Framework.

“The Zambian authorities are aware of the challenges ahead and have reaffirmed their determination to persevere with their reform agenda and put the economy on a path of sustained and high growth. The continued support from international financial institutions and other official creditors, together with the participation of bondholders in the proposed bond exchange, is necessary to underpin the success of these reform efforts.”

Source:IMF.org

22 COMMENTS

    • The program is already doomed to fail. So much money being pumped in CDF is already being stolen.
      What is more worrying is that in the Constituency where the finance minister is the MP the theft of funds is more pronounced.
      Is the minister of local government and rural development competent enough to manage CDF process? I doubt.
      And you expect the program to succeed?

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    • Is it the IMF that told us to borrow 34 billion usd? And no tangible asset to show for the loans. Where is Clive Chirwa’s high speed railway for the Eurobond which we borrowed from private investors? The Eurobond lenders want their money back! Did IMF advise us, let alone force us to borrow other peoples’ money? Let us be responsible and own up to our irresponsible behaviour. Someone is in court for stealing and ordinary suffering people are shouting alebwelapo!! How foolish can a population be?

  1. Impossible for the average Zambian to understand. The IMF should get off its high horse and deliver an explanation suited to the common man.

  2. Tell me one country in Africa that has successfully rescued by IMF.
    Show me one country in africa whose infra structure development has successfuly been supported by IMF?
    These Demons are suckers….They will suck you blood until you die.

    • You do not understand international finance. Who told you the IMF lends money for infrastructure development? Do you know that Mauritius has been on an IMF programme before?

  3. I am now convinced that Africa is a cursed continent…….do we really need IMF…???? WE DON’T NEED IMF ..we have enough resources to develop Zambia…just stop making dark room deals and bringing in fake Mining investors……HH YOU’RE SUCH A DISGRACE AND A FOOL

  4. We are foolish individual….very foolish, we deserve everything happening to us because we are stupid individual. getting loans without having a plan to pay back. And now we wan the same person who put us in this mess. Foolish indeed we are.

  5. From the time I was able to listen to statements and hear about the IMF I always marvelled at the wonderful statements that did not translate to what I was seeing on the ground. This has not changed. Also, politicians in Zambia have not changed tactics; it is all about defensive statements — very little substance of fact. So combining these two results in this vicious cycle where citizens are given half-truths while they starve in dignified hope. It is shameful as hell…

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  6. Some of these negative comments only demonstrates that we have many doomsayers in Zambia. Instead of seeing opportunities when Zambia successfully implements an ambitious economic reform programme supported by the IMF, some doomsayers are predicting that the programme is already doomed to fail and that we dont need IMF. Can these doomsayers check how a country becomes a member country of the IMF before concluding that we dont need IMF on behave of Zambia as a country!!

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  7. IMINGALATO ISHAMUNGULU SHIBI SANA, when done by baboya!!! You guys back home you elected ba boya.. look now hey!!!

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  8. She ll enjoy parading zambia as economic guinea pig whilst using all sort of jargon to exacerbate the cash squeez of citizens

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  9. A few years ago the IMF was praising Ghana for embarking on the IMF program. Look at where Ghana is today. Ghana is worse off than before the IMF program.

  10. A few years ago the IMF was praising Ghana for embarking on the IMF program. Look at where Ghana is today. Ghana is worse off than before the IMF program.

  11. The IMF writes the same things to gullible African leaders and their group praise jumps. All they do is find and replace. If the statement that last written to Ghana, another IMP slave all they do when editing the document is “Find Ghana, Replace Zambia”. Read through while they are laughing and send to the puppet HH. What progress has Zambia made, with high food prices, fuel prices, high exchange rate? The progress they are talking about are removal of subsides, selling all the maize to neighboring countries, giving tax holidays to white owned mines, give away tollgates to foreign companies, borrow some from IMF and not China. The end results are shortages of commodities to the common Zambia.

  12. IMF program was not present during PF, what did we do???…Default!!! We got the mines back, what did we do again???…Steal!!!

  13. Looks like IMF’s main culprit is Electricity supply companies….they know how cripple economies…..ask any Ghanaian the meaning of DUMSOR then you will know exactly where Zambia is heading to

  14. Looking at the comments above, you can see that Zambia, and Africa in general has a long way to ‘wake’ up. Most commentors dislike IMF for no logical/rational reason, and these IMF are the same that was in the same boat with PF.

    WE need to keep working hard to be able to develop the country. In addition, we need capital (which we don’t have currently) in order to buy production tools and machinery. But for most in Zambia, even this simple logic is difficult to understand. Anyway, that’s my 2cents

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  15. How Stupid some are !! WE are broke and WE go running to the IMF and world bank they Give us the
    T & C’s we agree and sign .. Things dont work out and we start insulting and blaming them
    Are we normal >>>>? ??

  16. I honestly thought that HH was smarter than he looks because he saw how KK embracing IMF brought him down and thats the same path he has chosen Only a fool will think that we will be Okay economically as a nation Watch this space

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