IMF loans are interest free & good for Zambia – Cheelo
An International Monetary Fund (IMF)-supported economic programme is inevitable for Zambia as it presents important opportunities for realism in setting the debt records straight, transparency and mutual accountability, and technical assistant towards establishing fiscal and debt discipline.
According to information made available to the Zambian Business Times-ZBT, a local research economist at Equilibria Consulting Limited Caesar Cheelo said through an IMF programme, Zambia would be able to replace expensive commercial loans bearing coupon rates in the region of 5.36-8.97% for cheaper zero interest rate moneys.
Cheelo said the debt service savings would create significant fiscal space.
He said an IMF programme would unlock new money saying Zambia is eligible to a quota of approximately US$1.3 billion in new concessional loan money.
“IMF loan terms and conditions of IMF loans are generally much more favourable than on any commercial debt, including any debt rearrangements (such as Bond refinancing). The IMF uses the following three concessional lending facilities to provide support to low-income countries (LICs) like Zambia.
“The Extended Credit Facility (ECF), Standby Credit Facility (SCF) and the Rapid Credit Facility (RCF) which are all concessional. While they have different maturities and grace periods, they are all currently interest free,” Cheelo said.
He explained that the ECF, which Zambia is seeking is a… follow link to read full article http://zambianbusinesstimes.com/imf-loans-are-interest-free-good-for-zambia-cheelo/