PRESIDENT IMPRESSED WITH IMF ROADMAP

Fri, 08 Sep 2017 14:22:02 +0000

By Oscar Malipenga

NEGOTIATIONS with the International Monetary Fund (IMF) were on a positive trajectory, President Edgar Lungu has said.

The President however expressed concern with failure by commercial banks to significantly reduce interest rates despite the Bank of Zambia having lowered monetary policy lending rates to trigger the banks to support government initiatives.

He said this at State House on Tuesday evening when he met Standard Chartered Bank Group Chief Executive Officer (CEO) Bill Winters where they discussed the bank’s plans to increase their participation in the Zambian economy across various sectors.

“Sadly we have not seen a significant interest rate reduction by commercial banks to support government initiatives, which is a source of concern. The high interest rates charged by commercial banks have also resulted in increased non-performing loan portifolios in the banking sector,” Mr Lungu said.

And government is determined to press on with reforms aimed at fiscal consolidation such as removal of consumption subsidies and reducing bottlenecks that increase the cost of doing business, President Edgar Lungu has said.

According to his special assistant for Press and Public Relations Amos Chanda, the President hailed the cordial relations between Standard Chartered Bank and the Zambian government and that the visit by the institution’s Chief Executive Officer was testimony of this cordial relationship.

President Lungu noted that the bank was a strategic partner with a global reach hence government was confident that the institution would continue as the country’s goodwill ambassador in promoting Foreign Direct Investments (FDIs) into Zambia through its diversified clientele base.

“The country’s peace and stable political environment makes Zambia a natural destination for FDIs and this was evident in the ever-increasing pledges,” said President Lungu.

And Mr. Winters assured President Lungu that on the occasion of Standard Chartered’s 100 years of operations in Zambia, it was right and proper that the bank pledges to do more to create greater partnerships with the government and the private sector.