The International Monetary Fund has revealed that it is now studying the recently launched Zambia Economic Recovery Programme to see how it could help finance it.
IMF Communications Director Gerry Rice announced during a press conference in Washington that the Fund is now assessing how it could support the program and reform efforts, through possible Fund financing.
Rice stated that following Zambia’s request for a financing arrangement with the Fund, its Director of the Africa Department, Abebe Selassie, and Zambia Mission Chief for Zambia, Alex Segura-Ubiergo, visited Lusaka in December, and held high level discussions with the Zambian authorities on the economic recovery plan and on request for a Fund.
Rice also stated that the IMF takes note of that recent policy announcement for a zero rate value added tax on fuel.
“While intended to protect consumers against possible price increases such measures tend to be regressive and do not benefit the most vulnerable groups,” Rice said.
“But, again, this is set in the context of my discussions with the authorities and our assessment of how we might be able to move this forward.”