The International Monetary Fund (IMF) has remained non-committal over Zambia’s request for emergency Covid-19 financing after it concluded the latest round of talks with the Zambian government.
In a statement, the IMF said discussions centered on the Government of Zambia’s request for emergency support under the Rapid Credit Facility to support the government’s efforts to address the social and macroeconomic impact of the COVID-19 pandemic.
It said the COVID-19 shock has significantly impacted economic prospects—growth this year will be negative, poverty has likely increased, and fiscal pressures have increased further with lower revenues, higher expenditure needs, and an already high debt service burden.
The IMF says discussions also focused on the economic policies needed to respond to the fallout from the COVID-19 pandemic.
It further says discussions will continue on the fiscal stance and policies in order to move forward with the request for Fund support.
The IMF staff team which was led by Dhaneshwar Ghura held virtual meetings during June 22–July 10 to discuss the Government of Zambia’s request for emergency support under the Rapid Credit Facility.
At the conclusion of the virtual discussions, Mr. Ghura issued the following statement:
“The social and macroeconomic impact of the COVID-19 shock, on top of a severe drought last year, will be heavy. Growth is forecast at around ?5 percent in 2020, substantially lower than envisaged at the beginning of the year, and the number of people living in extreme poverty is expected to increase. Fiscal pressures in 2020 have increased due to significantly lower revenue collections and higher spending needs. Zambia has requested support under the G20 Debt Service Standstill Initiative, which would provide temporary fiscal space this year.”
“Discussions covered both near- and medium-term policies to address these challenges and the underlying macroeconomic vulnerabilities, including the main elements of the revised 2020 Budget with a focus on spending for the COVID-19 health, social and economic response.
Discussions will continue as the authorities determine their policies and priorities in the formulation of the revised 2020 Budget, as well as the medium-term fiscal stance needed to restore debt sustainability, revive growth and lower poverty.
“IMF staff held meetings with Finance Minister Bwalya Ng’andu, Bank of Zambia Governor Denny Kalyalya, senior Government and Bank of Zambia officials; and the private sector.
“Staff express their gratitude to the Zambian authorities for the constructive discussions that were held and look forward to continuing discussions.”
Zambia has got the cold shoulder from the IMF. Better luck nxt time Bwalya Ng’andu and team. The IMF won’t be seduced into a new romance.
IMF has given Zambia the cold shoulder. Better luck nxt time Bwalya Ng’andu &Co. IMF won’t be seduced into a new romance.
Well, some good news for UPND cadres and paid bloggers. Likely most of them do not stay in Zambia.
I doubt it it’s good news for anyone. Who benefits from unpaid or delayed government bills? If only everyone would see it that way.
Good, don’t give these PF thugs money, their ka president is sh1t, or worse than sh1t, I mean really sh1t
Thank you IMF for refusing to borrow money to the PF government because for starters, a big chunk of this money would have ended up in the hands of a few people. Then hard working Zambians were going to have their hard earned migre salaries taxed in order to repay this debt over several years.
The last word always lies with the IMF executive board after a recommendation from the team that carried out the country evaluation. To know where the executive board will lean, u hv to glean it from the statement issued by the country assessment team. It’s not in plain English so one needs some initiation in how to interpret the statement.
@Nemwine it is just a trend from bloggers like yourself, Spaka, IndigoTyrol, Aristotle, Tarino Orange, Madilu system, LIE – DETECTOR the former Watch Dog blogger to celebrate whenever anything bad happens to Zambia. Misfortunes and hate will never put HH in power. The bloggers that use bad language, cannot coordinate ideas and some that keeps own changing their names are making this site look like some place one can not do intelligent conversations. Just a place for insults and to please pay masters. Some of us miss the old respectful LT were to learn something than ZWD.
@Nemwine it is just a trend from bloggers like yourself, Spaka, IndigoTyrol, Aristotle, Tarino Orange, Madilu system, LIE – DETECTOR the former Watch Dog blogger to celebrate whenever anything bad happens to Zambia. Misfortunes and hate will never put HH in power. The bloggers that use bad language, cannot coordinate ideas and some that keeps own changing their names are making this site look like some place one can not do intelligent conversations. Just a place for insults and to please pay masters.
Kci, show me one posting where I hv insulted u personally or anyone else and I will believe u. I hv celebrated no bad news that happens to Zambia.
IMF cannot commit until they are sure the money will be used for the intended purpose and not stolen which is very likely under the current scenario.
Look kci, I define patriotism for myself. Just engage with me clean not these below-the-belt blows coming from u. I will never allow those who buy fire engines at an inflated price of US$ 1 million each and not about US$ 190,000 each to define patriotism for me. People hv talked for hours and hours on end about this deal and no one feels obliged to challenge these allegations.
The only reason it has been hard for PF to get money from IMF is because of Zambia getting loans from China. IMF, USA, UK or the Chinese are all in Africa to make money. The same reason David Livingstone came to Africa still remains the same reason every other Muzungu, Indian or Chinese come to Africa. The moment African leaders realize that there is nothing called “assistance” from these people that is when Africa will start to develop. Whites have been fighting over owning a share of Africa in many forms. You know them as Missionaries, humanitarians, Investors, but what they are Colonialists, Slave Traders, Explorers. None of them are interested in developing Africa.
The only reason it has been hard for PF to get money from IMF is because of Zambia getting loans from China. IMF, USA, UK or the Chinese are all in Africa to make money. The same reason David Livingstone came to Africa still remains the same reason every other Muzungu, Indian or Chinese come to Africa. The moment African leaders realize that there is nothing called “assistance” from these people that is when Africa will start to develop. Whites have been fighting over owning a share of Africa in many forms. You know them as Missionaries, humanitarians, Investors, but what they are Colonialists, Slave Traders, Explorers. None of them are interested in developing Africa.
Best news all day.
kci
Yes , Ian very very happy lungu has been denied funds to terrorize the opposition, close private media and pay his thugs to attack any critics…..
Pleas , IMF , pleas,
don’t give this thug lungu any money……..his paid PF thugs are right now rampaging through Zambia because he has not paid them like he used to ……..
Good shout by IMF otherwise the money would ended up in Rwanda propping the rebels!! I know they will offer us a world beating deal next year after we get rid of this useless Edgar Cheekala Lungu.
@Kci
I live abroad and am so happy your gang of thieves have been denied money…. who was going to benefit? Not our grand mothers and fathers in the villages, not our poor people in compounds who still have no toilets and water… and you expect me to worry that IMF has not given you thieves money? Go check my past post, i predicted long ago that IMF, World bank will never give money to Zambia as long as the clueless thief is in statehouse.
We can’t wait just like the IMF to see you back sides gone VERY SOON
Don’t give them please imf
China is a member of the IMF, the World Trade Organisation, the World Bank and its currency is in the IMF’s basket of currencies that determine the value of the IMF’s intangible unit of account the SDR (special drawing rights). So many African countries that hv borrowed from China hv accessed IMF emergency Covid-19 related financial support. Zambia is the odd man out. Those privy to discussions with the IMF know the reason the IMF won’t dance with Zambia.
Kci, why did u adopt the religion Western missionaries brought then? Do u really know wht u want in this world?
The only reason it has been hard for PF to get money from IMF is because of Zambia getting loans from China. IMF, USA, UK or the Chinese are all in Africa to make money. The same reason David Livingstone came to Africa still remains the same reason every other Muzungu, Indian or Chinese come to Africa. The moment African leaders realize that there is nothing called “assistance” from these people that is when Africa will start to develop. Whites have been fighting over owning a share of Africa in many forms. You know them as Missionaries, humanitarians, Investors, but what they are Colonialists, Slave Traders, Explorers. None of them are interested in developing Africa. Look at what the US and UK are doing to China’s Huawei 5G.
We wont die. yes the funds could help cushion the adverse effects on the less unfortunate in society. However, it is not the end of the world. We have managed with IMF so far, so nothing really is going to change. Our friends in disapora would like us to suffer, funnily enough including the poor relatives they left here. This is how evil these traitors are. The lord works in mysterious ways, because funnily and sadly enough, it is the same western countries which have experienced the worst of this virus. look how many people died and continue to die in europe, including the UK. I understand if the IMF think we do not deserve the money. Possibly Europe needs it more seeing how bad they are doing there. Africa is forecasted to be grow more than europe and surpus all continents in world in…
We wont die bane! yes the funds could help cushion the adverse effects on the less unfortunate in society. However, it is not the end of the world. We have managed with IMF so far, so nothing really is going to change. Our friends in disapora would like us to suffer, funnily enough including the poor relatives they left here. This is how evil these traitors are. The lord works in mysterious ways, because funnily and sadly enough, it is the same western countries which have experienced the worst of this virus. look how many people died and continue to die in europe, including the UK. I understand if the IMF think we do not deserve the money. Possibly Europe needs it more seeing how bad they are doing there. Africa is forecasted to be grow more than europe and surpus all continents in world…
I see…..non comittal eh? No issue, meantime take some Red Rock.
Kaizer Zulu, We all know the reason for refusing is because of stealing. How come they have given other Africans.
Its okay for you to say you won’t die because you have money. Not everyone in Zambia is like you. A lot of Children will die of malnutrition, some people will commit suicide because they can bear the fact that they can feed their families.
The health minister is under investigation, there is no way the IMF would lend Zambia money. I would rather the president and government halve their incomes than get money that will be stolen. This is good news kikikiki.
@Nemwine, you are right but I’m the wrong context.
While decision to support of not support a country rests with the IMF Board, it can only do so based on recommendation from staff following a request and negotiations with the country.
In this case, staff are not making any recommendations because negotiations have hit a snag.
PF don’t steal in Kwacha currency. They steal in USD terms. When Chama was asking for campaign funds from Chikwanda in 2015, he said give strongholds tuma 150,000 and opposition Strongholds tuma 50,000. These were borrowed Eurobond funds! The only Eurobond PF can account for is the first one when Sata was still president. At least we saw how he distributed the money though accountability issues became an issue with the Institutions that received the funds. There is nothing to show for the funds.
Chagwa told IMF to go to hell. What is Bwalya Ngandu looking for from IMF? IMF knows that money will disappear before it lands into the GRZ account!
Transparency is the keyword in IMF programs. This is something that is incompatible with PF ‘modus operandi’. It is simply not in PF’s blood to run things in a certain way.
Why would IMF lend to Zambia a country with high debt levels, sponsors Mercenaries to depose other African Govts and a small and poor country owning and running 2 Presidential Planes? Corruption in Govt is rampant and mismanagement is the Order of the day. There is no respect for Rule of Law,Good Governance and Human Rights. No IFIs will financially assist such a corrupt country.