Finance Minister in Africa’s copper hotspot has committed to reaching an agreement with the Washington based lender by mid November. During a budget presentation on October 29, Dr. Situmbeko Musokotwane asked Zambians to rally behind the authorities efforts in meeting an agreement.
“To provide an anchor to our debt restructuring engagement, the New Dawn Administration is actively engaging the International Monetary Fund for a funded program. It is very imperative that Zambia gets support from the IMF for our economic reform program. Once attained, Zambia will be able to engage creditors to restructure its debt under the Common Framework. This will release cash resources which will enable us to finance more developmental needs. For now, we aim to conclude with creditors for restructuring of debt will be realized by the first quarter of 2022. Madam Speaker, I, therefore, urge this House and the nation at large to rally together and support Government to reach an agreement with the IMF by the end of November 2021. There is no option to this otherwise the debts we owe will choke this nation to a stand-still,” Dr. Musokotwane said.
Zambia formally applied for a fully funded program 19 months ago following a deterioration in economic conditions on the back of a spiral in debt resulting in fiscal fragilities. The President Hakainde Hichilema regime inherited external debt of $12.96 billion contracted by the previous regime which the new dawn government is set to correct through various interventions announced in todays estimate of revenue and expenditure.
An IMF technical team courted Zambia after the landmark meeting between Zambia’s head of state and delegation with the Washington based lenders Chief Kristalina Georgieva in Washington on the sidelines of the UN General Assembly conference.
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