Achieving this goal also implies the restructuring would need to bring the present value of external debt-to-exports ratio to a level consistent with substantial space to absorb shocks by 2027. per capita by about a quarter. All rights reserved. PDF Inevitability and Necessity of an IMF-Supported Economic Programme for Spending on social protection is projected to more than double from 0.7 percent of GDP in 2020 to 1.6 percent by 2025 (around the average for sub-Saharan African countries). Frequently Asked Questions on Zambia - IMF It is anchored on cutting back inefficient public investment, eliminating regressive fuel subsidies, and reforming the agricultural subsidy program by reducing procurement costs. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. The International Monetary Fund and Zambia on Friday reached a staff level agreement on a $1.4 billion, three-year extended credit facility, which could bring the heavily indebted country one step . These reforms seek to remedy past weaknesses in economic governance and public financial management that led to an unsustainable debt overhang. Together with Chad and Ethiopia, Zambia is one of the three countries that have requested a restructuring of its external debt under a common framework agreed last year by China and other Group of 20 members, and the Paris Club of major creditor countries. Free Download. read more, "Zambia continues to face profound challenges reflected in high poverty levels and low growth," Georgieva said on Wednesday. The Zambian authorities have committed to an ambitious economic reform program to address the severe economic and social challenges facing the country. 2022 International Monetary Fund. THE IMF AND ZAMBIA: THE CONTRADICTIONS OF EXCHANGE RATE AUCTIONING AND DE-SUBSIDIZATION OF AGRICULTURE HANS-OTTO SANO ON 1 MAY 1987, President Kaunda of Zambia announced the abolition of weekly exchange rate auctioning and with that the termination of the IMF-Zambian agreement on economic crisis management which had been in operation since 1984. Exclusive news, data and analytics for financial market professionals, Reporting by Chris Mfula in Lusaka and Karin Strohecker in London; additional reporting by Tommy Wilkes, editing by Marc Jones and Aurora Ellis, Yellen sees 'progress' in rocky US-China ties, expects more communication, U.S. calls Pan Gongsheng China's central-bank 'head', suggesting unannounced promotion, Solomon Islands leader visits security partner China with focus on infrastructure, UK's Hunt to detail plans to steer pensions into growth investment, BBC faces questions as presenter accused of paying teenager for pictures, Dynamo Kyiv criticise Fenerbahce for pre-season games in Russia, Eramet in talks with European carmakers over Argentina lithium plan, CEO says, Netanyahu signals impatience with protests as Israel's judicial reform edges ahead, China sets wide-ranging rules for $2.9 trillion in private investment funds. At the same time, with support from Fund capacity development, the authorities are strengthening accountability and transparency, particularly around the use of public resources. 319 0 obj
<>/Filter/FlateDecode/ID[<7DD3E7EE36B0404187C48248C938A277><4C612687BFA5CC49891050832E753309>]/Index[294 66]/Info 293 0 R/Length 118/Prev 481112/Root 295 0 R/Size 360/Type/XRef/W[1 3 1]>>stream
To remove any hurdles to the timely completion of the review, Zambia needs official creditors to move forward and reach agreement on a debt treatment in line with the financing assurances they provided in July 2022. ZAMBIA Joint World Bank-IMF Debt Sustainability Analysis August 2019 Prepared jointly by the staffs of the International Development Association (IDA) and the International Monetary Fund (IMF) Approved by Marcello Estevo (IDA) and David Robinson and Martin Sommer (IMF) Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Cambridge University Press (www.cambridge.org) is the publishing division of the University of Cambridge, one of the worlds leading research institutions and winner of 81 Nobel Prizes. August 24, 2020. Copies of this report are available to the public from International Monetary Fund Publication Services PO Box 92780 Washington, D.C. 20090 0
This item is part of a JSTOR Collection. Request Permissions. Significant improvements in debt management and transparency are also being implemented. 1986 Cambridge University Press Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. The IMF Executive Board has approved a three year 1.3 billion US dollar program to support the government's reform efforts under this program to help bring public debt back under control, Zambia's government aims to cut wasteful spending or spending that doesn't help the poor, such as fuel subsidies. 2022 International Monetary Fund. The authorities are undertaking a sustained fiscal adjustment by reducing inefficient spending and raising domestic revenues. Cambridge University Press is committed by its charter to disseminate knowledge as widely as possible across the globe. The IMF program aims to restore Zambia's macroeconomic stability through fiscal adjustment and debt restructuring and strengthening economic governance. For more information, visit http://journals.cambridge.org. Our Standards: The Thomson Reuters Trust Principles. At the conclusion of the mission, Mr. Porter issued the following statement: "I am pleased to announce that the IMF team has reached a staff-level agreement with the Pakistani authorities on a nine-month Stand-by Arrangement (SBA) in the amount of SDR2,250 million (about $3 billion or 111 percent of Pakistan's IMF quota). Use the free Adobe Acrobat Reader to view this PDF file. Without credible institutions and sound policies, sustained At the same time, the gap between the high- and low-income groups has probably See here for a complete list of exchanges and delays. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Exclusive news, data and analytics for financial market professionals. , . Zambia and the IMF Investors welcome the news, which lifted the country's hard currency bonds, which jumped as much as 1.3 cents to trade between 75-78 cents in the dollar, Tradeweb data showed. recent years has greatly relied on the much-improved effectiveness and IMF's Work on Zambia Fraudulent Scam Emails Using the Name of the IMF Departmental Papers on Africa Back to Top At a Glance Current IMF membership: 190 countries Zambia joined the Fund on September 23, 1965; Article VIII Total Quotas: 978.2 Million (As of April 30, 2016) By clicking 'Agree', you agree to these uses of cookies. The Bank of Zambia will continue strengthening its monetary policy framework and financial sector supervisory capacity, supported by a revision of the Bank of Zambia Act, including to ensure its operational independence. A key objective of the authorities reform program, supported by the Fund, is to gradually increase the level and quality of social spending to reduce poverty and inequality, as well as improve access to basic social services, especially in rural areas. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Zambia: Request for an Arrangement Under the Extended Credit - IMF The IMF Press Center is a password-protected site for working journalists. The expected large, upfront fiscal adjustment envisages an important shift in spending, away from inefficient public investment and poorly targeted subsidies, towards greater investment in health and education and the delivery of more social benefits. Zambia before the end of the previous Governors mandate. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMFs Executive Board. "The ECF-supported program aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth.". The Fund-supported program incorporates providing access to free education for all and a much-needed increase in spending on health and education, including hiring over 41,000 additional health and education workers. The IMF Press Center is a password-protected site for working journalists. All Rights Reserved. To read the full press release, click here. The industry leader for online information for tax, accounting and finance professionals. [1/2]The International Monetary Fund logo is seen at IMF headquarters in Washington, U.S., October 14, 2017. Ministry of Finance and National Planning, #mofnp, Lusaka-Zambia to OFFICIAL GROUP - Ministry of Finance & National Planning Surprisingly, few analysts and observers, particularly the antiIMF proponents, have ever bother- ed to check what role the IMF programme played in assisting Zambia to establish macroeconomic stability and sustained economic growth during this period. banks operational independence and credibility is maintained, particularly Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website. This will free up some fiscal space to increase social spending to ease transition burdens on the most vulnerable, she said.
This shift will be underpinned by an ambitious medium-term agenda to enhance revenue mobilization through policy changes and administrative changes. It is imperative that central They will also underpin the authorities efforts to rebuild the economy, including to boost economic resilience in the face of the ongoing COVID-19 pandemic and climate vulnerabilities. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. But positive changes are happening. Updated: IMF Staff Reaches Staff-Level Agreement on an Extended Credit The Zambian case, in which the roots of resistance to reform were present in a "developmentalist" model long before the arrival of the IMF, suggests that the current analysis of political "will . Washington, DC December 6, 2021: An International Monetary Fund (IMF) team led by Ms. Allison Holland, Mission Chief for Zambia, conducted a virtual mission with the Zambian authorities during November 4 Dec 2, 2021, to discuss a program to be supported by the IMFs Extended Credit Facility (ECF) arrangement. Key elements of the authorities reform agenda aim to re-establish fiscal sustainability while reorienting public resources towards investment in people, particularly the youth. End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. IMF Reaches Staff-level Agreement with Pakistan on a US$3 billion Stand Some cookies allow third parties to tailor the ads you see when you visit our site and other third party websites. China's on the move again, economic outlook brightens, Japan's biggest banks to raise housing loan rates after BOJ's policy tweak, Japan's tourism restart stirs hope of service-sector recovery -PMI, South Korea's Sept inflation slows but tightening bias seen intact, Belgian Ryanair pilots plan strike in summer holiday period, Ontario plans more nuclear reactors to meet rising electricity demand, Mercedes-Benz picks Tesla's charging standard for North America EVs from 2025, Tesla rolls out customer referral incentive globally as EV price war heats up, UAW wants EPA to soften vehicle emissions plan. "This agreement is based on the authorities plans to undertake bold and ambitious economic reforms," Allison Holland, IMF mission chief for Zambia said in an emailed statement. See here for a complete list of exchanges and delays. IMF CONDITIONS (MAKE AN EFFORT to download the full document - Facebook Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website. The Fund said the next step in the debt restructuring process was for Zambia's official creditor committee to agree on specific steps on how to deliver debt relief, in the form of a memorandum of understanding to be reached by the end of 2022. Spending will be more tightly controlled, with the determined implementation of public procurement rules and regulations central to ensuring value for money and the transparent use of public resources. 359 0 obj
<>stream
The governments ambitious reform program, supported by the IMF, seeks to restore fiscal and debt sustainability, create fiscal space for much needed social spending, and strengthen economic governance and transparency. It is one of three African countries, along with Chad and Ethiopia, that have sought restructuring under a G20 common debt restructuring framework. hbbd```b``^"-A$W`RLHX`v The country will have access to around $188 million after the review is completed. United Nations' Secretary-General Antnio Guterres condemned the air strike that reportedly killed at least 22 people in Sudan on Saturday, according to a statement released by a spokesperson early on Sunday. The IMF Board approved a new Extended Credit Facility (ECF) arrangement for Zambia today, Wednesday August 31st, 2022. IMF Executive Board Approves New Extended Credit Facility (ECF In parallel, Zambia will initiate specific discussions with private creditors on how comparability of treatment, a requirement of the Common Framework that will be further described in the MoU, might be achieved. At the same time, it will increase tax revenues that can go toward development. The next step is for the Official Creditor Committee for Zambia, under the G20 Common Framework, to agree with the authorities the specific modalities of how official creditors intend to deliver debt relief consistent with Fund-program parameters in the form of a Memorandum of Understanding (MoU). increased independence of central banks. IMF Members' Quotas and Voting Power, and Board of Governors, IMF Regional Office for Asia and the Pacific, IMF Capacity Development Office in Thailand (CDOT), IMF Regional Office in Central America, Panama, and the Dominican Republic, High-Level Summary Technical Assistance Reports, Financial Sector Assessment Program (FSAP), Currency Composition of Official Foreign Exchange Reserves. Editorial policy avoids commitment to any political viewpoint or ideology, but aims at a fair examination of controversial issues in order to promote a deeper understanding of what is happening in Africa today. Aug 31 (Reuters) - Zambia won International Monetary Fund approval for a $1.3 billion, 38-month loan program on Wednesday, a crucial step in the southern African country's quest to restructure its debts and rebuild an economy ravaged by mismanagement and COVID-19. IMF Statement on Zambia. ]7W@kEo4 |@e&2g4U8? 294 0 obj
<>
endobj
All rights reserved. ,lN"H2`q
)) Q`H3be`bd` To complement the authorities strong reform program a comprehensive debt treatment under the G20 Common Framework is needed to restore debt sustainability. The authorities reform program should support a return to price stability over the medium term., In light of unsustainable public debt, the authorities reform efforts will need to be supported by a comprehensive debt restructuring. The IMF had reached a staff-level agreement with Zambia last December for up to $1.4 billion loan, but it was contingent upon Zambia's ability to reduce debt to levels the Fund deems sustainable. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision. Zambia will have access to about US$188 million in financing once the review is approved by IMF Management and formally completed by the IMF Executive Board. See here for a complete list of exchanges and delays. The board meeting comes after Africa's second-biggest copper producer clinched a deal with bilateral creditors such as China and the Paris Club to rework about $6.3 billion of overseas debt. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Press Releases. Together with the fiscal adjustment, Zambia needs a deep and comprehensive debt treatment under the G20 Common Framework to place public debt on a sustainable path in the medium-term. Once an agreement that meets these goals is in place, Zambia would have secured cash flow relief through 2031, as well as seeing a significant cut in the economic burden (or present value) of its debt, debt sustainability would be restored and no additional rounds of restructuring would be needed. To support the authoritys efforts to strengthen governance and reduce corruption a comprehensive governance assessment will be undertaken with support from IMF staff. The International Monetary Fund (IMF) has published the conditions attached to the newly agreed programme with the Zambian government. Our Standards: The Thomson Reuters Trust Principles. IMF Country Report No. 22/292 ZAMBIA the IMF walked with Zambia throughout the journey. Many of these journals are the leading academic publications in their fields and together they form one of the most valuable and comprehensive bodies of research available today.