IMF teams jets in today for $1bn deal talks

Wed, 01 Mar 2017 13:08:46 +0000

By NATION REPORTER

A DELEGATION from the International Monetary Fund arrives in Zambia today for talks over a US$1 billion financing deal which is expected to propel the country on its economic recovery programme, it has been learnt.

And Zambia is unlikely to return to the international bond market before 2018 as the
country seeks to pursue its home grown road map after suffering a steep in commodity prices of recent years while devising initiatives to service the existing US$3 billion loan secured in bonds since 2012.

Finance ministry spokesperson Chileshe Kandeta and sources close to the meeting said the return of the officials from the Bretton Woods Institution is part of the consultative programme expected to culminate into an IMF supported programme.

However, sources close to the IMF-Zambia financing deal say the Government was cautious in its approach towards the bond market and is presently considering ways of refinancing the existing bonds to give the country relief on the repayment due dates to avoid defaulting.

“The Government is very cautious about defaulting on the loans if it goes back into the bond market; that is why it is seriously considering ways of refinancing the existing US$3 billion loans to extend the repayment period while undertaking austerity measures to realign the economy,” the source added.