• Zambia receives an invitation to participate in the first meeting between Zambia’s Official Creditor Committee and the IMF.
• Zambia will present its economic reform agenda and the progress made since the Staff-Level-Agreement with the IMF was reached in December 2021.
• IMF programme will provide Zambia with much-needed fiscal space and help to anchor reform agenda.
Minister of Finance and National Planning has disclosed that Zambia has received an invitation to participate in the first meeting between Zambia’s Official Creditor Committee and the IMF, organised under the G20 Common Framework.
Speaking during a media briefing, Dr. Situmbeko Musokotwane said at this meeting, Zambia will present its economic reform agenda and the progress made since the Staff-Level-Agreement with the IMF was reached in December 2021.
“This includes several revenue measures to regain fiscal space by making the tax system more efficient, developing a comprehensive public finance management strategy and improving oversight of borrowing, “he said.
“As unsustainable debt is choking our ability to respond to the economic challenges faced, we will also present our official creditors with the path we envision to reach debt sustainability and the support that will be needed from our international partners including initial assurances of debt treatment, a precursor for approval of our IMF programme. Once approved, the IMF programme will provide Zambia with much-needed fiscal space and help to anchor our reform agenda, “Dr. Musokotwane added
Dr. Musokotwane also stated that this meeting will pave way for more detailed debt restructuring talks to commence involving all Zambia’s creditors.
He said the need to address the debt crisis is urgent and unless this is done promptly, Zambia will not be in a position to invest adequately in economic and human development
Dr. Situmbeko is optimistic that after this meeting, the International Monetary Fund (IMF) debt relief will be given to Zambia.
“We are confident that together with our creditors we will be able to achieve a mutually beneficial solution to ensure Zambia’s return to sustainable debt levels, “he said.
Dr. Musokotwane however said government is uncertain if the IMF deal will be closed this month end as earlier anticipated due to the delay by Creditors to hold this meeting.