We can succeed with or without IMF – EAZ

Mon, 22 May 2017 13:17:35 +0000

By BUUMBA CHIMBULU

THE International Monetary Fund (IMF) should only come in to oversee the country’s programmes to be funded by the multilateral body as Government embarks on a credible package, says Economic Association of Zambia (EAZ).

EAZ president, Chrispin Mpuka, said Government had a responsibility to embark on credible programmes which would still succeed with or without the IMF intervention.

And commenting on sentiments from some members of the public who are sceptical that the IMF would introduce stringent measures, Dr Mphuka said in an interview that the fund would only come in Zambia to help. “The IMF should come in to oversee the programmes. I think what is important is that Government should embark on a credible programme, whether IMF or not; that is what is important. But the IMF are coming to help so I do not think there is any reason for us to be scared,” he said.

Dr Mphuka also said the reduction of the policy rate by the central bank to 12.5 percent from 14 percent was a positive development for the economy.

“The reduction is very important because now what it means is that it makes available resources to commercial banks to ensure that they increase lending,” he said.

He further said the economic performance in the first quarter of 2017 was positive as indicated by encouraging macro-economic fundamentals such as the reduction in inflation rate.

“I think inflation is low which is a good thing and the exchange rate has remained stable but the challenges of the deficit seem to remain still and interest rates are still high, so that is the part which is of concern,” he said.

“Since BoZ has finally reduced the policy rate we hope that things will improve as banks will follow suit and reduce,” he said.