Tue, 20 Feb 2018 11:48:08 +0000
By BUUMBA CHIMBULU
GOVERNMENT should urgently make a firm decision on the International Monetary Fund (IMF) end all speculations around it as this is damaging the credit rating of the country, says economist Chibamba Kanyama.
Mr. Kanyama emphasised the need for the Government and the newly appointed Minister of Fi- nance, Margarete Mwanakatwe, to make a firm decision about the fund as soon as possible.
“If she can bring the IMF back to the table, which is very unlikely as things stand, inter- national investors will rate her highly. For me, a firm decision about the IMF programme must be made in the next few days so that we end all speculations around it as this is damaging the credit rating of the country,
“Mr Mutati is now out of the Ministry of Finance; this happening when the IMF discussions are reaching a dead end owing to debt sustainability problems,” Mr. Kanyama said.
Mr. Kanyama also observed that Ms. Mwanakatwe would be rated highly if she engaged the IMF.
He explained that it was more a question of whether she had the appetite for an IMF pro- gramme than what the IMF had said about the sustainability of Zambia’s debts.
And Mr. Kanyama said Ms. Mwanakatwe would succeed in her new position as she had more authority within the ranks to reject unplanned spending than her predecessor.
According to Mr. Kanyama, the new minister would also succeed following her experience as
a banker and as an accountant which provides her the best leverage to negotiate financial deals with expected intelligence.
Mr. Kanyama said her objections to scale compromises would also be taken in good context.
“Despite my numerous concerns such as the new path to restructure Chinese debt, and the motivation for her appointment and the outstanding petition, I am still optimistic she will suc- ceed purely on the back of my two assumptions, which are; she is much more accepted in the cabinet ranks than Mr Mutati was.
“It means objections to fiscal compromises will be taken in good context. She has more authority within the ranks to say ‘no’ to unplanned spending than her predecessor had. She is an
accountant and a banker who is expected to apply maximum due diligence and ethical leadership in the execution of her duties,” he said.
