FINANCE MINISTER DEFENDS GOVT PLANS TO SEEK FURTHER IMF FUNDING
By Nelson Zulu
Finance and National Planning Minister Dr. Situmbeko Musokotwane has defended the government’s decision to seek further funding from the International Monetary Fund-IMF- following the recent disbursement of $184 million.
Dr. Musokotwane says the latest funding is the sixth instalment under the Extended Credit Facility programme that began in 2022 and is due to conclude in October 2025.
In an interview with Phoenix news, Dr. Musokotwane has clarified that the latest engagement with the IMF is aimed at maintaining macroeconomic stability, strengthening foreign exchange reserves and addressing balance of payments pressures rather than financing long term development projects.
The Minister explains that short term liquidity support is sought from the IMF, while long term development projects such as roads, schools and water supply are funded through development banks like the World Bank.
Dr. Musokotwane has also noted that the IMF programme has helped to stabilise the exchange rate, keeping the Kwacha close to 23 per US dollar despite global shocks, which he says reflects prudent management of external reserves.
PHOENIX NEWS