The International Monetary Fund still hopes to reach a deal with Zambia before elections in August on an economic program that will form the basis of the nation’s planned debt restructuring.
Talks that began last year are continuing, and the Washington-based lender aims to conclude them “in the next few weeks,” Africa Director Abebe Aemro Selassie said in an interview.
“I hope we can move forward by reaching agreements, and get broad endorsements of political leaders,” he said.
“But that will depend on agreeing on the parameters of the program, and we are not just there yet.”
The timeline is tight.
While the polls that will probably be closely contested are set for Aug. 12, the constitution stipulates that parliament, and by extension President Edgar Lungu’s cabinet, must dissolve about three months before that, suggesting a deal may need to be agreed by May 14.
Zambia’s $1 billion of Eurobonds due 2024 extended gains on Thursday, rising by as much as 1.6% to 59.14 cents on the dollar, the highest in more than a year.
Africa’s second-biggest copper producer last year became the continent’s first pandemic-era defaulter.
External commercial creditors, including those holding the nation’s $3 billion of Eurobonds, want the government to reach a deal with the IMF, which they will then base their restructuring talks on.
Most observers only see it possible for the IMF to come to an agreement with the government once the elections, in which the ruling party’s Edgar Lungu will seek to win a second five-year term, are out of the way.
Source: Bloomberg
Izamugwila shiki anso, kachema….
The IMF is very strongly advised to NOT get into an agreement with the most corrupt PF government the country has ever had: the money will surely have moved into the pockets of president Lungu and his band of thieving cadres!
Chainama here he comes. He’s riding a bicycle while dressed in a 3 piece suit.
SHOCKING DISGUSTING DISGRACEFUL !!!!!!!!!!!!!!!!!!!!!!!!!!!
When God says yes nobody can say no.
Hahaha look how angry the devils in upnd are. They were praying for us as a a country to experience adverse economic effects. How can a normal person wish ill on their fellow country men. I understand upnd diasporans are retarded but it seems even those in Zambia are f0ols.
By the way where is hh? We heard he is in a coma due to covid. Can the upnd tell the nation what is going on instead of posting old videos of him riding a bicycle around his home. The earlier they tell us, the faster we can start national prayers for that sinner hh
One needs to read the whole article but these empty tins only see headlines
How ever, this may sound as good news to most of us lay men in the Economic perspective. Be very careful because while trying to clinch a quick deal, we will be shooting ourselves in the leg. Our team from the ministry of Finance have been discussing and negotiating a better deal but time is running out hence the possibility of accepting whatever the IMF is offering and based on their conditions and rules. This in turn is not even a better deal but as PF govt it is important to get this worst deal anyway. The effects will not be felt now or rather immediately but soon or later someone will come out and say this was a bad deal and should not have been taken at all. Yes the current PF govt will be happy going into the election having clinched a deal with the IMF but after the election you…
“He who comes with a carrot using a stick should be given a brick to chew and shown the door”. When are we going to learn that the job of these organisations is to keep poor people poor by selling them debt. Magufuli showed these guys the door and his life was cut short. I wish our journalist can investigate the so called deal and put it out there for scrutiny. The interests of these organisations lie elsewhere. They will make sure we default and trigger some useless clauses which ensure we don’t benefit from our natural resources. They want our copper so badly to meet the electric car demands. Zambia, OPEN YOUR EYES!
It’s annoying that Mwami 1 and his charges can’t find Pheluna and Milton Hatembo. If they have failed let them tell us so that we join the search
I don’t think it will happen before
Elections. They also know it but
Just playing games. Let them attach tough conditions with it.
One of them is to tell ministers to
Declare wealth they Have accumulated .
PF doesn’t need IMF money. Hakainde and his RSA friends are hoping IMF will give Zambia tough conditions and make the masses suffer. It wont happen! Whether IMF money is there or not, PF has financial muscle to win the election. China is always ready to help.
I can bet this is just lip service. The guys at IMF are also politicians. They will not say no directly on your face. They are too smart. This money wont come. They will just delay things until the elections. Once the elections are over, depending on who wins, they will start the ball game all over again.
# 12 Socrates
“PF doesn’t need IMF money. Hakainde and his RSA friends are hoping IMF will give Zambia tough conditions and make the masses suffer. It wont happen! Whether IMF money is there or not, PF has financial muscle to win the election. China is always ready to help….”
Why then are the masses suffering with very high cost of living and no jobs ???
Unless less you are talking about the PF caders …..?
Ba IMF please wait until after the elections to strike a deal twa pa pa ta, this is not good news for UPND.
Sometimes people think of the IMF as if it is an isolated entity. Zambia is a member and as such it is entitled to IMF programs and money. It has nothing to do with the government of the day, except the negotiating skills of the government. The reason why the PF government has had protracted negotiations is not IMF’s fault but GRZ negotiators. Before Covid, they were just interested in shopping in US. Remember AB Chikwanda getting off the plane with duty free whisky?
LT should enroll for English lessons.
““But that will depend on agreeing on the parameters of the program, and we are not just there yet.”
That headline is so misleading. The content of the article states something else.
Eurobond holders are wishing for the IMF assistance to Zambia so they can also renegotiate their money recovery. These cash lenders give money to States and not political parties or presidents. Whether IMF deal happens before or after elections is of no consequence because UPND is facing electoral defeat either way.
A story is told in the Bible about king Solomon and the two women both claiming to be the mother of a child. King Solomon revealed the true owner of the child when he suggested that the baby be cut in two. This trick worked because the one who was not the real mother of the child had not interest in the child’s life and consequently agreed that the child be cut in two. This scenario is Tver true for some of our colleagues in the opposition “ The child (Economy) must die for them to come to power? They rejoice in the economic woes of our country. Very sad indeed. Our king will not allow that to happen.
This is the great news for Zambia. The hard work of President Lungu will pay off and our economy will be recovered.
It was bound to happen. The turn of events over the last few months indicated the outcome. And not IMF has given the clear message.
The UPND camp will be unhappy by this news. I am sure they must be brain storming on how to denounce this and create fake narrative about this.
I always wondered how a person who is not even a MP could negotiate with IMF on behalf of the country! Whatever HH claimed was always doubtful. Now it is proved beyond doubt that it is only President Lungu who can steer the country out of trouble.
Who are you, boss? Why are you speaking against my country? Now, don’t tell me that the one who is named in Panama Papers is the honest man in the world.
Why is it shocking? Why is it disgusting and disgraceful?? Just because PF government is getting it through? Why were you dancing when HH was talking of doing the same thing? This is not just hypocrisy, but treason.
I am so happy to see the UPND surrogates fuming here. It is heavenly pleasure to see them pulling their hair!
Zambia’s debts will be rescheduled before August. A major boost to the economy and a major blow to HH. What would he do now? His plan has gone for a toss!
This is wishful thinking by the PF Govt. No Cash Bailout Package can be granted to Zambia b4 the outcome of the 2021 Elections are known. If the August 12 Elections are not declared free,fair,credible and peaceful then the IMF Programme will be off the table. If Elections are violent, rigged and disputed then IMF cannot grant a Cash Bailout Package to an illegitimate Govt. Violent, Rigged and Disputed Elections in Zambia, in August 2021 ,will have dire Consequences. The writing is on the wall.
Someone please educate me…if Zambia had a debt of $20 billion at a time when copper is at it’s highest level, we have discovered a gold mine, we have uranium(high grade) some of the finest timber in the world, possible oil and gas undiscovered, plenty of water and fertile land and the list goes on. How on earth do we get a bunch of clowns from the IMF coming to threaten us on defaulting because they think we are poor? They are busy forcing our government to agree on deals which will disadvantage our future generations and ensure we stay poor. I urge every Zambian, regardless of political affiliation take interest and ensure we send a no nonsense team to secure a good deal for the country.
There will be no deal. The IMF cannot flatly refuse and therefore they will keep on giving conditions until after August thats when they will finally decide.
The current GRZ is made up of people who’ve sunk the country into an economic rat hole.No need for IMF to negotiate with such dunderheads with no economics IQ.
Where can I buy Zambia Euro bonds.it seemaa good buy.
PF aligned Bloggers don’t know how IMF Operates. There is no way IMF would commit to a Cash Bailout Package now with a possible outgoing Govt. The Fund will await the outcome of the August 12 Elections and if the Elections are declared free, fair and credible they will sit down with the New Govt to negotiate and agree on the finer details of the Programme and the Conditionality thereof.The Fund knows that it’s dealing with a Corrupt and incompetent PF Govt and will not leave its Money to be looted with impunity . The writing is on the wall.
No IMF board member will agree to have the organization enter a program so close to the election date. So forget this deal until Sept.
“The timeline is tight.
While the polls that will probably be closely contested are set for Aug. 12, the constitution stipulates that parliament, and by extension President Edgar Lungu’s cabinet, must dissolve about three months before that, suggesting a deal may need to be agreed by May 14” – this whole statement is not from the IMF it is the writer’s. Only what is in the quotation marks is attributed to the IMF Africa chief.
That said the writer understand his readers dont pay attention