The Ministry of Finance has confirmed that the African Development Bank group has imposed sanctions on Zambia for failing to repay 1.4 million dollars loan in accordance with the Bank Group Policy on Loan arrears recovery.
According to a statement issued by ministry of finance Public Relations office the sanctions were imposed on 15th December 2019, to inform the ministry that as of Monday 23rd December, the Bank had not received full payment in respect of Bank Group Bills.
“Government acknowledges that the African development Bank did write to the ministry of finance on 23rd December 2019, to inform the ministry that as of 23 December 2019, the bank had not received full payment of the in respect of the banks bills” the statement said.
The Bank stated that it counted on Government’s prompt action for timely settlement of the amount to enable the lifting of the sanctions.
However government has explained that payment of the outstanding 1.4 million dollars is being processed and will be finalized as soon as possible.
“The position of government on this matter is that payment on the outstanding amount of US$1.4 million is being processed and will be finalized as soon as possible” the statement said.
The statement has also clarified that the delay in the settlement of the bill is due to the sadden depreciation of the Kwacha which increased the volume needed to settle the amount.
Government has since assured Zambians that the situation is under control and not as portrayed on social media.