UNPLANNED BORROWING LANDED US IN THIS SITUATION
…The approval of the anticipated @IMF supported programme has been stretched from June to later in the year to allow Official Creditors (Government and Government related lenders) under the G20 Common Framework to make credible assurances and facilitate IMF staff submission of Zambia’s request for a 3-Year Extended Credit Facility to IMF management and the board for approval.
This is important because without affordability in making debt payments, the budget will not afford allocations for payment of salaries, spending on social sectors such as education and health, and meeting infrastructure development obligations.
In fact, as much as 75% of all the money the Government collects on a monthly basis would go towards debt payments without debt restructuring. To mitigate the impact of such a scenario, the creditors who Zambia owe’s money have been asked to reduce what the country owes them before we ask the IMF to help.
Had there been carefully planned borrowing in the past, we would not be in this condition, however, WE WILL SOLVE THE PROBLE. Trust the process.
Dr. Situmbeko Musokotwane, MP
Minister of Finanace & National Planning