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‘Engage China to attain IMF bailout’

By RUTH YAMBAYAMBA

GOVERNMENT must properly negotiate with China and other lenders to attain the International Monetary Fund (IMF) bail out, former Economic Association of Zambia (EAZ) president Lubinda Haabazoka has said.

Dr Haabazoka in an interview noted that the major challenge facing Government on debt restructuring was that the lenders came with two different economic ideologies contrary to those of the IMF.

He said some represented an organic view of Eastern lenders and the other group represent a mechanistic view of western lenders.

Dr Haabazoka added that with Zambia targeting the Eurobond which was quite difficult because the debt was owned by several scattered investors and this made it difficult to have common ground with the IMF.

He said that the debt restructuring would allow a private or public company or a sovereign entity hence conveying an approach to treat everyone equal so that no one feels marginalised or disrespected.

Dr Haabazoka advised the government to consider the country’s position in the world which should be that of non-alignment for it to successfully negotiate debt restructuring with various lenders.

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