• Zambian Government remains in constant touch with the IMF.
• IMF intervention will enable the country to get onto an IMF program.
• Zambia approached the IMF in order to seek assistance out of the quagmire.

Minister of Finance says the International Monetary Fund (IMF) programme will enable Zambia to access long term concessional funding as the terms include interest rate at zero percent, grace period of five and half years and 10 years to pay back.
Speaking in Parliament, Dr. Situmbeko Musokotwane said the IMF intervention will enable the country to get onto an IMF program, therefore the country will access cheap money.
Dr. Musokotwane added that the Staff-Level Agreement reached between the two parties in December 2021, is broadly based on Zambia’s reform agenda, and government has worked with the Fund to reflect the country’s priorities in the contemplated Programme.
He further said the Staff-Level Agreement has also paved the way for debt restructuring talks with Zambia’s creditors, hence the creditors will be treated fairly under the auspices of the Common Framework for debt treatment beyond the debt service suspension initiative.
“Zambia approached the International Monetary Fund in order to seek assistance out of the quagmire. IMF assistance is required for two reasons. Firstly, the IMF alongside other international bodies can help to broker a deal between the Zambian government and the creditors or those that the government owes. In such a deal, creditors will be persuaded to re structure Zambia’s debt. Secondly, the intervention from the IMF will enable the country to get onto an IMF program. That IMF program will make it possible for Zambia to access long term concessional funding as she moves forwards.”
“The desired outcome after the restructuring should be such that the debt that remains is serviceable. This then will enable the country to return to the group of respected countries which borrow, pay back and be able to borrow again if necessary because lenders will trust her,” he said.
He added that the Zambian Government has remained in constant touch with the IMF so as to reach the full board economic program by the middle of this year of 2022
“I wish to emphasize that the resolution of Zambia’s crippling debt situation is paramount to reviving the economy. We can’t expect a strong economy as long as the debt situation is not brought back under control. The path the country has taken to get into an economic program with the IMF is the only credible route to arrest the debt situation is the only credible approach for now that will help to deliver debt relief and a return to normalcy,” Dr. Musokotwane stated.
And Dr. Musokotwana revealed that the IMF totally supports the recruitment of11, 200 health workers and 30, 000 teachers this year and resources for the recruitment exercise are readily available.
He was in responding to Chama North Member of Parliament Yotam Mtayachalo who wanted to know whether the IMF is in support of government’s decision to recruit more than 41 thousand civil servants within this year.
Once the Staff Level Agreement culminates into a formal agreement with the IMF board, the fund will provide the Extended Credit Facility (ECF) that aims to provide $1.4 Billion in financial support over the next three years.