15th April, 2022
TRANSPARENCY IS REQUIRED OVER THE IMF DEAL BY THE UPND GOVERNMENT
There seems to be an impasse or obstacle in the discussions with Zambia’s creditors.
It has now emerged that the IMF have been waitigng for the Debt Sustainability Assessment (DSA) and the outcome of the Creditor’s debt relief discussions. Commercial creditors are not part of the creditors committee yet they hold 46% of our external debt while China accounts for 22%.
The information being shared here, is not something that the Government has openly shared with us as Zambians but has been pieced together through snippets of what has come to our attention ONLY AFTER the UK Minister of Africa’s visit to Zambia and her statements.
On the governance side, the government being a representative of the people of Zambia, was expected to share with the Zambian public the final outcome of the Debt Sustainability Assessment. We understand that this Assessment will form the basis of negotiations with the creditors committee as to the amount of debt relief required.
Some questions need answering by the UPND Government:
– Why has the UPND in Government not shared the actual process being undertaken?
– Why were we, the people of Zambia, only told that we are pursuing the IMF deal but not that this deal’s success is contingent upon satisfactory discussions with the Creditor’s Committee?
The conditions under the Staff Level Agreement have not yet been disclosed and yet their impact is already being felt by the Zambian people. It then follows that in all honesty, the Zambian people deserve to know what we, as a country, are seeking from the lenders in terms of debt relief. Anything short of this transparency will deprive Zambians in having a say in their future as the effects of this huge debt is already being felt by every person on the streets.
Government should therefore share with the Zambian public:
1. The results of the Debt Sustainability Assessment.
2. The alternative plan (plan B) if the outcome of the DSA and Creditors Committee discussions does not succeed in light of the complexity of creditor coordination.
3. The plans for the way forward should the $1.4 billion IMF not actualise.
4. What plans the Government has for the repayment of the Eurobond that is due this year in September 2022.
#LetZambiansWin
CHISHALA KATEKA
President – New Heritage Party