Thursday, November 14, 2024

Zambia expects full agreement with IMF on $1.4 billion support plan in mid-2022

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Finance Minister Situmbeko Musokotwane says he expected the country to reach full agreement with the International Monetary Fund in the middle of this year, after reaching a staff-level agreement for a $1.4 billion support plan in December.

“We are well on the way of solving this issue of unsustainable debt. We expect full agreement with the IMF sometime in the middle of 2022,” Dr. Musokotwane said at a meeting with officials from the Bankers Association of Zambia.

The GRZ-Bankers Association of Zambia (BAZ) Consultative Meeting took place on Friday and Bankers have since been tasked to develop innovative products that will facilitate streamlined access to finance for Small and Medium Enterprises (SME’s) sustainability and growth, rural development and expansion, and innovation and skills development.

And the Consultative Meeting recognized that one of the challenges facing players in the economy is access to afforbale financial sector products.

The Consultative Meeting agreed that, going forward, a task team would be constituted among BAZ members to submit to the Government, product proposals aimed at helping to address the financial needs of SME’s, rural development, and innovation and skills development.

The Government team comprised Minister of Small and Medium Enterprises Elias Mubanga, Minister of Local Government and Rural Development Garry Nkombo, Felix Mutati, Minister of Technology and Science including Finance and National Planning Minister Dr. Situmbeko Musokotwane.

According to a statement, the Government delegation was elated with the active participation of BAZ members in the deliberations and commended them for the resolve to play an active and progressive part in the revival of robust economic growth.

The Government team also noted the need to improve result-oriented interaction between the banking sector and small and medium scale players in the economy.

5 COMMENTS

  1. The “staff level” part of the IMF agreement has never been explained to Zambians.
    DOES IT RELATE TO REDUCTION OF THE GOVERNMENT WAGE BILL AND THUS RETRENCHMENT OF THE CIVIL SERVICE AND LOCAL GOVERNMENT?

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