by Mirriam Chabala on 19 Oct 2019by Julia Malunga on 18 Oct 2019by Natasha Sakala on 17 Oct 2019by Sipilisiwe Ncube on 17 Oct 2019
by Natasha Sakala on 17 Oct 2019by Natasha Sakala on 15 Oct 2019by Ulande Nkomesha on 15 Oct 2019by Ulande Nkomesha on 13 Oct 2019
by Zondiwe Mbewe on 17 Oct 2019by Zondiwe Mbewe on 16 Oct 2019by Zondiwe Mbewe on 16 Oct 2019by Zondiwe Mbewe on 16 Oct 2019
- Goal Diggers
by Abraham Kalito on 15 Oct 2019by Abraham Kalito on 15 Oct 2019by Abraham Kalito on 8 Oct 2019by Abraham Kalito on 7 Oct 2019
by Diggers Editor on 18 Oct 2019by Diggers Editor on 16 Oct 2019by Diggers Editor on 15 Oct 2019by Diggers Editor on 13 Oct 2019
- Guest Diggers
by Douty Chibamba on 19 Oct 2019by Felicity Kayumba Kalunga on 18 Oct 2019by Patricia Scotland, Commonwealth Secretary-General on 17 Oct 2019by Simon Manda, PhD on 16 Oct 2019
- Editor's Choice
by Diggers Correspondent on 24 May 2019by Diggers Reporter on 4 Mar 2019by Andyford Mayele Banda on 29 Jan 2019by Davies Mwila on 22 Jan 2019
by Felix Kashweka on 4 Oct 2019by Diggers Correspondent on 28 Sep 2019by Douty Chibamba on 25 Sep 2019by Ulande Nkomesha on 24 Sep 2019
2018 budget will be stressed if Zambia fails to clinch IMF deal – MutatiBy Mirriam Chabala on 23 Nov 2017
Minister of Finance Felix Mutati says Zambia’s economy will suffer critical stress under the 2018 budget if government fails to reach a closure with the International Monetary Fund (IMF).
And Mutati today failed to state exactly how much debt Zambia has accumulated so far when members of parliament grilled him.
Responding to a question from Solwezi Central UPND member of parliament Stafford Mulusa who wanted to know how the collapse of IMF negotiations could affect the 2018 budget, Mutati said there were a number of risks that the country needed to take care of.
“Mr Speaker, there are a number of risks that we need to take care of. Amongst them is the risk that budget support that has been programmed for next year is going to be endangered. There is a risk that commitments that have been made by some of our bilateral partners may not be delivered. So that will create critical stress on the economy. It will mean that we shall have to cut from somewhere, it means to secure stability of the economy is going to be challenging. So the risk is real, it is critical and we will have to face it and work hard to do the right thing,” Mutati said.
Mutati also said government was working hard to ensure that debt levels remained stable and that the country only borrowed what it was able to repay.
“Mr Speaker, Cabinet on November 6, 2017, discussed these issues and gave a clear policy direction which include; developing a new financing profile that will ensure the reduction of debt distress from high to moderate on the medium term and to also ensure that debt remains sustainable thereafter. Mr Speaker, our goal as a nation is to ensure that we borrow within our capacity to repay and to refocus expenditure while enhancing domestic resource mobilisation. Of critical importance is to focus on completing ongoing projects. With these measures, government has continued to engage the IMF and as part of the engagement Mr Speaker, we recently had a visit by officials from the IMF and during the visit, the mission met the President Mr Edgar Lungu and her honour the Vice-President madam Inonge Wina,” Mutati said.
Mutati also said having an IMF bailout would help Zambia reduce the negative sentiments of the country’s investment climate.
“Sir, as a member of the IMF, we must utilize a key mandate of the IMF of providing balance of payment to members experiencing balance of employment challenges as the case has been for Zambia. Mr Speaker, having an IMF bailout will reduce the negative sentiments of investing in this country, this is so because many investors mainly rely on the IMF for the assessment of a country’s investment climate. Mr Speaker, let me also assure the nation through this August House that government is resolved to have an IMF supported programme and that the nation will be kept abreast about everything,” he said.
And responding to a question from Roan PF member of parliament, who charged that Mutati failed to clinch a deal with the IMF because he lied about Zambia’s debt, Mutati said he never misled the IMF but did not disclose how much the country was owing.
“Thank you member of parliament for Roan, you may recall that under Article four, the IMF did produce a public statement and in that statement it included the level of debt. The figure that was quoted by the IMF was constant and exactly the same as the figure that we provided. In short, there was no misleading statement,” said Mutati.
About Mirriam Chabala
Mirriam covers current affairs and writes in-depth feature articles on social issues.
Email: mirriam [at] diggers [dot] news
- Tough decisions will be made despite close 2021 polls – Lungu - 19 Oct 2019
- It’s not govt’s responsibility to pay council workers, councils must raise own money – Minister - 17 Oct 2019
- Chipata police arrest Egyptians for ‘nasty rape’ - 17 Oct 2019
- Underinvestment has led to limited growth in Agric sector – CTPD - 17 Oct 2019
- Govt hasn’t done enough to avert hunger crisis – Gwembe MP - 15 Oct 2019
- Police should not wear masks (2,716 views)
- Phiri explains heavy police presence in Lusaka's CBD (2,431 views)
- Benny Zulu led us to the crime scene for reconstruction, Cop tells court (1,726 view)
- Namugala curtails homosexuality debates (1,503 view)
- You're being dared, pull up your socks, Kampyongo tells law enforcement agencies (1,032 view)
- Load shedding: The underlying causes that we are overlooking
- Tough decisions will be made despite close 2021 polls – Lungu
- The Proposed 2019 Constitution Amendment Bill: A Threat to Zambia’s Democracy?
- Police should not wear masks
- SA’s renewed load shedding puts Zesco power import deal at risk – Eskom
Subscribe For News In Email
The News Diggers
Deputy News Editor
Plot No. Lus/9812/649-MC8
off Alex Chola Road
P.O. Box 32147
Telephone or WhatsApp:
diggers [at] diggers [dot] news
editor [at] diggers [dot] news
Send this to a friend