international monetary fund

IMF CONFIRMS NO RELIEF PACKAGE BECAUSE OF HIGH DEBT

The International Monetary Fund (IMF) has confirmed that Zambia will not receive its request for emergency Covid-19 relief funding because of the country’s unsustainably high levels of debt.

IMF Director of Communications Gerry Rice confirmed that the fund had received Zambia’s request for emergency Covid-19 relief funding, as well as an earlier request for support for Zambia’s broader economic reform programme.

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

Speaking to a virtual press conference held on Thursday evening, Dr Rice told journalists that Zambia did not meet the necessary criteria to qualify for IMF financing.

“Zambia’s public debt is on an unsustainable path, under current policies,” he said.

The director went on to explain that without significant steps to stabilise its debt, any loans granted to Zambia would only make for a “poorly designed program” that would “make matters worse for a country and its citizens”.

The IMF is set to continue to engage in talks with Zambian authorities on their economic response to the pandemic, as well as their medium-term macroeconomic objectives and policies.

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2 COMMENTS

  1. This is what happens when the ruling party fails to heed to good advise.governance in a democratic dispensation requires all citizens to get involved in the running of day to day affairs of the country.in this case the opposition got very involved of over borrowing by the ruling party but they wouldn’t hear to wise visionary leaders.so what next??ala ichalo chesu bonse whether in pf or mmd

  2. The PF government has mismanaged all the huge loans it contracted more especially loans acquired from China. China’s selfish desire to exploit Zambia of it’s natural resources has continued providing loans to Zambia. On the other hand, PF government knows very well that whatever loans they have contract will be paid back by the Zambian people.

    No wonder Chinese businesspeople are discriminating Zambians even going to extent of Zambians foreigners. All is because Zambia owes them colossal amounts of money. Zambians have the country to themselves while the Chinese people have money and power to control the economy. Poverty and debts will make people vulnerable to abuse and suffering. So please stop blaming the Chinese instead lay all your blame and frustration on vision less leadership of the PF government are good at sourcing funds through Kaloba.

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