The International Monetary Fund and the Zambian government on Friday reached a staff level agreement on a $1.4 billion, three-year extended credit facility.
“This agreement is based on the authorities’ plans to undertake bold and ambitious economic reforms,” Allison Holland, IMF mission chief for Zambia said in a statement.
“The staff-level agreement is subject to IMF Management and Executive Board approval and receipt of the necessary financing assurances. Further details on the agreement will be released on Monday.”
President Hakainde Hichilema, who was elected in August, had started talks with the IMF in early November.
“The IMF programme will provide much needed fiscal space to Zambia and anchor our domestic economic programme,” Finance Minister Situmbeko Musokotwane said in a statement.
Dr Msokotwane said this will be in addition to the US$1.3 billion SDR allocation that was received in August 2021.
“Reaching a Staff-Level Agreement was one of the immediate objectives of the New Dawn Government and a directive by His Excellency, Mr. Hakainde Hichilema, President of the Republic of Zambia that the Ministry should finalize negotiations with the Fund, that had protracted for years, within the shortest possible time, and this is exactly what we have done,” he said.
The Finance Minister added that the IMF programme will provide much needed fiscal space to Zambia and anchor its domestic economic programme, which is based on four pillars that include, economic transformation and job creation, human and social development, environmental sustainability and good governance.
“As a result of the policies underpinning the IMF programme, we will be able to prioritize human development and meet critical Government programmes including social sector spending in health and education,” he stated.
He stated that the policy package also reflects government’s objectives such as provision of bursaries and meal allowances to vulnerable students as well as the implementation of the decentralized programmes under the Constituency Development Fund (CDF).
“We have engaged in many months of rigorous discussions and consultations to agree on an economic and financial policy package that will help us restore debt sustainability, build a productive and resilient economy, and sustain the livelihoods of our people, he added.
“The Staff-Level Agreement paves the way for debt restructuring talks with our creditors. Upon reaching an understanding with the creditors, including through the G20 Common Framework for Debt Treatment, the IMF Board will consider Zambia’s application for the ECF Programme. Upon Board approval, we will have access to highly concessional financing from the IMF and will also be able to start accessing financial support from other multilateral and bilateral partners. Having a programme in place will boost investor confidence and move our economy towards a sustainable economic growth trajectory,” Dr Musokotwane noted.
He has since thanked the IMF team, and the Zambian team for the hard work that led to reaching a staff-level agreement.
He further announced that on Monday 6th December, 2021, he will hold a joint press briefing with the IMF Mission Chief to Zambia, Ms. Allison Holland, during which we will provide more detail on the Staff-Level agreement and will be able to answer questions.
In late October, Zambia promised to slash its budget deficit and curb borrowing in a bid to secure IMF support, as well as reduce spending on politically-sensitive subsidies – such as on power, fuel and farming – likely to have been one of the fund’s key demands.
Zambia’s external debt includes around $3 billion in international bonds, $2.1 billion to multilateral lending agencies such as the IMF and another $3 billion to China and Chinese entities.
It says HH’s govt “plans to undertake bold & ambitious economic reforms”…this shows PF was allergic to vision and economic acumen.
THANK YOU PF FOR PUTTING US IN THIS PREDICAMENT :((
“President Hakainde Hichilema, who was elected in August, had started talks with the IMF in early November.
“The IMF programme will provide much needed fiscal space to Zambia and anchor our domestic economic programme,” Finance Minister Situmbeko Musokotwane said in a statement.”-LT
If a common man can interpret the above article that this is politics it has nothing to do with building the economy of Zambia. IMF and Mr. President Hakainde Hichilema just out of hand can you name five Zambia Intellectual properties for us to embark on this IMF program?
No country can do without borrowing. We told you so.
The problem here is that the new dark Government thinks borrowing from IMF and the World Bank is not borrowing. IMF is a problem. The sakala nyongo on the seat has auctioned our country again this time without spelling out to us how much bapompwe stand to gain, and the freeze they force on our throat. We are back at the confused economic freeze, development freeze as the IMF takes charge of our economy remote controlling hh. Europe and US are now controlling our country again.
IMF loan will come with it’s conditions and Zambians should
Tighten their belts as subsidies
Will not be there.Price of Fuel and
Electricity will go up and hence
Everything else.
@State House has Fallen, you’re just another economic illiterate like your Lungu. No one can lend Zambia money because Zambia is officially bankrupt courtesy of Chagwa Lungu. On two occasions, Lungu failed to service two installments towards Zambia’s international debt. The result was a run on the Kwacha. Both bilateral and multilateral lenders were alerted to the fact that Zambia is a bad debtor. Once you get yourself in this predicament only the IMF, as lender of last resort, can rescue you. That is why Lungu opened negotiations with the IMF. He did not succeed because his government were liars. They couldn’t tell the truth of how much they had borrowed. Let UPND clean the mess Lungu left behind. Spare us your insults.
@ Tikki
I hope our UPND is not also putting us in a more bigger problem with this IMF debt. We don`t want the song `mumala mulelila ngulungulu mu PF` to change to the new version of `mumala mulelila ngulungulu mu UPND` because it will be a big shame to alikwisa driver? aleisa ,aleisa, aleisa!!!
Even while in opposition when the economic devastation wrought by lungu became apparent, HEHH has always said he will seek an IMF bail out ………….
Yes , there will be austerity measures thanks to lungu and his gang…………
But priority areas will be protected like job creation , education and health……….
The IMF are not dumb , they know what needs to be done and they know what can’t be done………
“This agreement is based on the authorities’ plans to undertake bold and ambitious economic reforms,” Allison Holland, IMF mission chief for Zambia said in a statement.
Well we are in this position because of the reckless borrowing of the PF govt…we warned the PF 10 years ago that stubborn donkey Fossil Chikwanda but you called us lunatics. Lungu and his ministers Margaret “Aunty Dizzy” Mwanakatwe, Felix Mutati and Bwalya Ng’andu made countless trips to Washington and lamentably failed to get an agreement because there was no seriousness to stop the excessiveness.
Today we are back again to tightening our belts …I am optimistic though that we will recover from this mess within 3 years this govt remains focused.
State House Has Fallen – You pipe down and use your handset you are posting from to reasearch. You tell us where you are going to get $1.4 billion at the rates IMF is offering?? And no IMF and the west can not own Zambia because its already owned by the Chinese every person in Zambia has a debt to pay to the Chinks…they own your strategic assets which PF auctioned off and they are watching in the background. Where do you think PF was getting all those K100 notes they were handing out to voters? Today they cannot even host a convention
VILLAGE MENTALITY COMING FROM SOME
HOW ANNOYING
As expected hh has yet again sold this nation to his imperial masters. Its like selling our mines for peanuts during privatisation was not enough for him. He is back to finish his dirty work. You will suffer you f00Iish Zambians who voted for him
Where is our RESIDENT Lecturer INDEPENDENT OBSERVOR to give a lecture on borrowing? Could avail us with a synopsis sir? He would never show himself on such articles.
Someone on the thread based in the UK I wont name as I dont want to give it credibility is still stuck in the past…this is one reason why PF will not bounce back as its filled to the rafters with ignorant thugs who can not articulate anything.
Tarino, The PF today cannot even host a convention, yet they were giving out money!!!!! How the mighty have fallen
We are not against borrowing but we are against the manner in which this
administration is going about; we Against set of beliefs that shape how you make sense of the world and yourself. After all this borrowing a gap between rich and poor will remain the same. GRZ needs to be introspective. IMF are you not troubled? with HH appointing Former UNIP members Into this new dawn administration. Too Many Wounded lions in this new dawn administration.
@Francis
Borrowing is borrowing whether you get it from the West or Far East. The question is what are the Ts and Cs attached to the money you’re blindly getting from the Monsters.
Citizens need to know.
Don’t show your blatant 1do!cy on this podium. Stfu! !unat!c.
State House Has Fallen – the terms and conditions are very simple remove the luxuries like subsidies and other stuff bloating your budget for IMF to lead you money…its called responsible leading. What do you want to know? If you have any suggestions on where you can get $1.4 billion post it on here now…PF govt wasted $1.2 billion on a motorway…you were clapping ati infrastructure development…dont you know at that price that motorway can be laid with solar panels from Ndola to Lusaka thereby combating the energy deficit.
If you budgeted for 3billion dollars from borrowed money then you end up with 1.4 billion dollars my statement is you have already failed your budget, now what will go away from the budget is it not the constituency funds or what ever is weaker in the line, Musokotwane must panicking and sweating where should he go , since he had so much confidence in the monster called IMF
Merry Christmas everyone! HH’s present for the Zambian people: Petrol and diesel will go up with 85% while Zesco tariffs will double!
Tarino Orange
1. Let go ! The sooner you evict me from your head/mind the better for you. Something is bothering you about me. Peace is my fragrance. Your innuendos & insults cannot shake or steal my joy in life. I passed that threshold, long ago.
Your everyday contribution on this IMF matter means nothing to change Zambia. The best that you can do is to use your mind to become a wealth creator and job creator. Because, if you do that you will be helping the nation to repay taxes. Therefore, do your part because – Action speaks louder than words I do my part by paying millions of taxes through my ventures back in Zambia.
Tarino Orange
Stop coming to Lusakatimes looking for contests & fights to quench your frustrations and misery. The world is paying millions of $ Dollars to Thinkers. Tap into your abilities and creative mind to become the next big thing in Zambia.
Remove that Antagonism, Hate and Fury that is short-changing you from becoming the next big story for Zambia. I am sorry to hear that your uncle has been side lined by HH. That is politics for you. You are old enough to know that.. !!
Good Luck !!
Ba TARINO ORANGE @ 12
Old Man, jealousy will kill you. You are not a match @INDEPENDENT OBSERVER………………………
The man is making a difference and giving back in Zambia by buying school desks, digging water boreholes in villages, funding orphanage children, paying medical feels for people to go for operations in South Africa, India, Turkey that are not even his relatives. He does not brag about it or seek to be in the media for his good causes. This is jealousy beyond understanding. Is it the cool $50 Millions he made from bitcoin that is bothering you.?? For some of us who know him personally, we know he lives a larger than life but still very humble and kind to be people regardless of their background, tribe or ethnicity. Why all this agro…
How is it that most upnd bloggers seem to be filled with hate, safe opinionated, unwilling to dialogue or discuss Matters and always drift to insults?
To them, whatever HH says or does is okay with them, no matter how unreasonable or unrealistic.
Just wondering???
Wow! – I am doing my part as well its just that I dont have drumbeaters like you promoting me or kissing up…to be honest I dont even know about this $50 million, it wouldnt matter if its $150 million or $20 billion, its his money his hard work and congrats to him.
INDEPENDENT OBSERVER 20
YOURS ARE THE MOTIVATIONS AND ENTHUSIASMS THAT PRESIDENT HICHILEMA WANTS TO HEAR FROM EVERYONE OF US. IT’S VERY UNFORTUNATE WE HAVE INDIVIDUALS WITH HOLLOW MINDS HERE AT LUSAKATIMES WHOSE AGENDA is TO CAUSE HAVOC. WE ARE A NATION THAT IS IN DEBT. IT WILL REQUIRE SMART THINKING AND BEING PIONEERS TO UPLIFT THE NATION. WE HAVE NOW COME TO DISTINGUISH WHAT EXACTLY THESE HOLLOW MINDS WANT FROM THE UPND GOVERNMENT. THE PRECISE THING THEY WANT IS JOBS FOR THEIR RELATIVES. I HAVE BEEN UPND FROM THE TIME THE LATE MAZOKA STARTED THE PARTY, AND I CAN CONTRIBUTE TO THE NATION WITHOUT GETTING A JOB FROM HH. GOD BLESS YOU MY BROTHER.
Tarino Orange
Haha haha…….You have changed your caption thinking that you will f00l us that it was an imposter who posted those embarrassing
comments when you cried and mourned that your uncle has been side lined by HH. Men you are such a dull and gloomy person.
Just go and make your own money. INDEPENDENT OBSERVER was smart to see an opportunity to make
money and he made his dosh from bitcoin. Maybe if you stopped coming to luskatimes every day you would find time to make money.
Tarino Orange
Now you know. He is Zambian, an investment bank working for Goldman Sachs in the late 40’s. He invested $30,000 and bought 1700 bitcoins at $15 each and sold them when they were around $32,000 which made his a cool $50m. He is not a lecture by profession as you seem to insinuate. He lives between London & New York. What surprises me is that you are the only one that has problems about his comments when he talks that as Zambian we should all tap in our potential to uplift the nation. Don’t you think that’s what we need in Zambia to start thing outside the box???
I am 27yrs, you are old enough to be my father to be coaching about this. # Here is my advice, let those of us that like his gospel read it. If you don’t like his comments, just skip his comments. I don’t…
Tarino Orange
Really…….If its not you its that psychopath blogger @ ZAMBIA TODAY calling INDEPENDENT OBSERVER names. Why should ZAMBIA TODAY go to the extent of calling INDEPENDENT OBSERVER just got lucky. Its not being lucky but being smart and grabbing opportunities I can also tell you that he is very savvy about issues about economics and the IMF and World Bank, though he is not an economist. But he choses to mostly to stay mute because the arguments about this subject are mostly personal and who is insulting PF or UPND supporter. Big man be happy for a fellow Zambian. Why take things so personal. Well to some of us, he is an inspiration.
Ba Tarino Orange @24
No one is promoting or kissing up to @INDEPENDENT OBSERVER. They are people that agree with his messages and will add to what he has posted, This includes UPND supporters such as #GEOFFREY KHUMBULA, #MOONGA etc.. That is not kissing up. Is that what really bothers you?. Then you have a serious problem in your head, the fact that if you see a person being praised for posting wisdom and objective comments that bothers you. That is a definition of JEALOUSY. Ghosh what is wrong with you Old Man?
Tarino Orange ……………
Yet again you decide to embarrass yourself. The problem with UPND chaps think you now own Zambia and have the power to insult anyone who does not agree with your fuulishness. Just looking at your everyday comments one can sense that you are very vindictive with serious issues. We know one issue bothering you your uncle being left out by HH.
Zambia does not learn. Following in imf blacked Mmd privatization footsteps? That country has enough resources that can feed an entire eastern Europe. Just sit down there, think, counsult right people. You can pick a sector like agriculture or manufacturing that are not capitol intensive and work up from there.
Here we again, this is now getting boring. Doing the same things but expecting a different result at the end of it. The theme for our next president has been set. Irresponsible borrowing to pay off a debt even though financial advisors will tell you that never borrow money to pay off a debt. We warned about IMF now watch how they will strangle us.
Yoga – I changed my caption or gravatars for a reason and if you want to check its me compare my changed gravatars with one in the archives and see if the MATCHES up. Let me give to you straight I have NO AFFLIATION to UPND or have any uncle “side-lined” by the current govt in fact there is more chance of my relatives being associated to PF leadership than UPND.
Wow … – It seems you have not done with your drumbeating …surely you don’t know me or my achievements and I don’t even know this “God” of yours who stumbled lucky over bitcoin how can I be jealous of him …really laughable…so does that give him the right to lecture me or motivate me? Maybe you need motivation not me. You keep dropping names of people I hardly know just because I was against Lungu’s awful…
Yoga – I changed my caption or gravatars for a reason and if you want to check its me compare my changed gravatars with one in the archives and see if the MATCHES up. Let me give to you straight I have NO AFFLIATION to UPND or have any uncle “side-lined” by the current govt in fact there is more chance of my relatives being associated to PF leadership than UPND.
My comment to you @Wow … is awaiting moderation. Anyway when you are done beating the drums for your God …come back to earth and have a sober debate.
Happy Sunday!!
Tarino Orange –
You are fighting with guys young enough to be your children and they are making your temperature rise up all for nothing. What really bothers you about Independent Observer?? Like someone said, don’t read his comments if you have problems with his philosophies. From the comments, one can tell that they are some who like his motivations talking points. You have no directives to be telling other bloggers to get the hell of Lusakatimes. Those are symptoms of tyranny. The truth is that you are the same Tarino who was yelling that your uncle was dumped by the president. You cannot dupe us. You are only cheating yourself. Its quiet sad that you can take these extreme measures to be relevant. Frankly your comments often disturb the flow of debate. I say this as a UPND.
Mutafela Mulife – Go back to that comment where I said my uncle was dumped and compare the gravatars with today as it is linked to my email address…my account was hijacked always look at the gravatars I never post such claptrap. It seems you are new to LT…do you not know there is a UK based impostor out put me down!!
Any Financing methods cheaper and flexibly structured to support GDP Real Growth levels towards targeted outlook of more than 4% to 6% over the 2022 Baseline projections to 2026 is welcome But these Budgetary support in Financing should result in Growth growth that will result in domestic revenues generations of at least above 40% These therefore must result in creating capital that could have gone
into debt repayments and costs of refining existing The efforts of the minister will be little if the economy will not recover and be sustainable so after these Finances So the IMF refinancing must be compounded by efforts to rebalance and restructure the revenues generations…
Any form of Financing that is cheaper as a budgetary support on the Gross Budget Deficit is welcome but such must be to give relief in refinancing and revenue Gaps to Grow the economy and result in sectorial revenue measures locally that will be 40% in Real GDP sectors grown revenues that will support the Government Financing Long-term post 2022 We may need to see the net benefit of the debt restructuring May be the key questions to always ask should be about the broader fiscal and economic costs of attaining debt sustainability The Point is whatever Financing and Refinancing methods must result into GDP growth levels on the domestic sectors for long-term economic…
Let me put straight to you lot that I never post stories about my relatives, brag about anything…I have done so for the past decade every time I post on LT, now I am here defending myself for a post I didnt submit of an uncle I dont know. Bloggers who have been on LT know me better to post such rubbish and I have no affiliation to UPND or have no friends directly attached to UPND in the UK. My Caption photo is linked to my email address as I have stated so when I change my photo it is attached to my email account so go back to the comment and see if the photo is the same on that post about my uncle. I had to change the Jay Jay alias because of this nonsense…as for Independent Observer I wouldn’t care less if he had £20 or £2000000000 in his bank account.
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Tarino Orange
SIR! PLEASE STOP. No one is going to believe you. The very fact that you are trying so hard to change the story, proves that it was you who posted the story whinging about an uncle. Why has anyone hacking your email account has to do with his. Why use your personal or important email to post comments on Lusakatimes? Most clever people don’t use their real emails to protect themselves. It does not matter how many times you deny. You posted the comments about your uncle. Again, if INDEPENDENT OBSERVER is not an issue, why are you still bringing him up @ 41. Can you see why he asked you that you need to evict him from your mind for your own good? Unfortunately you shot yourself in the foot. Next time think twice before commenting.
Moong – Dont be a dumbass …do you know what a gravatars is? Its a web service that lets users upload an online avatar and will associate the avatar with their email address. This is why I have a picture on my account anyone can have this service and upload the same picture and clone my account …this is why I change my picture constantly when my account is cloned.
You think I seriously care about your lord saviour and your motivator Independent Observer or his riches …really laughable ..you dont know me. Anyway enjoy your week hope its a success.
Tarino Orange
That is the problem with you. The only thing that you know is to call people names. You really have issues in life. The best you can do is to call me a dumbass. I am computer programmer in C++, Python, SQL, HTML, JavaScript, Kotlin etc.. I know about using avatars. You don’t necessarily have to associate or use your email account to display Avatars on Social Media postings. My advice for you is to use a dummy account when posting comments on Lusakatimes, if security is vital to you. If I posted an avatar for a picture that everyone loves as an avatar, it does not mean I have hacked someone who is using the same picture I am using. Again, you are talking about things that you cannot even defend or understand, like you always do.
So you think I use my own personal email address? How long have you been on LT? This is a silly debate..have a good day
By the its clear you’re not very smart you are urging with me about something I have told you I didn’t post.