IMF

DEVELOPMENT ANALYST SAYS CANCELLATION OF SOME PROJECTS IS IMF MOTIVATED

By Musonda Kalumba

Development Analyst Dr. Becky Banda has charged that the recent resolution by cabinet to cancel some projects is part of the international monetary fund –IMF- conditions for Zambia to obtain the $1.4 billion bailout package that the country is seeking.

Recently, the cabinet announced the cancellation and publication of undisbursed project loans amounting to $2.05 billion as part of the measures to address the debt challenges, and channel the funds to other critical issues and future developmental programs.

But reacting to the development, Dr. Banda argues that these are conditions set by the IMF that government has to abide by if Zambia is to obtain the bailout package.

In an interview with Phoenix News, Dr. Banda explains that these are some of the conditions that the PF government turned down but states that because the UPND administration is in dire need of money from the IMF, it has agreed to the conditions.

Dr. Banda explains that these conditions by the IMF are unpredictable and injurious to many African countries, saying it is worrying that government has gone ahead to agree to the IMF conditions by cancelling projects that are important to the development of the country.

PHOENIX NEWS

3 COMMENTS

  1. Development Analyst Dr. Becky Banda!!
    Are you an analyst or a political cadre? The country is in severe debt and is unable to service the loans. Here you are barking ati some of the conditions by IMF that made t the PF government turn down. No wonder you failed to get the loans from IMF. You wanted the new deal government to continue borrowing to complete the stalled Universities in Luapula and Northern provinces? Those Universities are not a priority.

  2. Well, as we all know, the IMF instigated cancellation of development projects as a condition for its bailout is intended to ensure that the IMF first recovers its loan monies from Zambia before Zambia can further implement any development projects. It is to tie Zambia to the IMF so that if pays back the loan monies it can later be enticed to acquire new loans from IMF for future implementation of development projects that will now be shelved. Is it any wonder then that Ghana which has been touted as a success story based on IMF borrowed money can today fail to disentangle itself from the vicious cycle of perpetual debt it finds itself caught up in?

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