According to Gvnt, Zambia’s bailout package was approved by the International Monetary Fund (IMF), and results have already been encouraging.
This, according to finance minister SITUMBEKO MUSOKOTWANE, is demonstrated by the Kwacha’s appreciation quickly after the announcement.
Dr. MUSOKOTWANE said the announcement has increased trust within the business community during the IMF-ZAMBIA media briefing in Lusaka.
Dr. MUSOKOTWANE has pleaded with the public to distinguish between creditors’ money and the IMF deal.
According to him, the IMF funding will aid the nation in restructuring its debt, which includes paying off creditors.
The money handed to the government is completely concessional, according to IMF Resident Representative PREYA SHARMA, and would be paid over a 10-year period starting five years after receipt.
The process will continue when Zambia and the IMF sign a memorandum of understanding outlining the terms of payment, according to Ms. SHARMA.
DENNY KALYALYA, governor of the Bank of Zambia, said that half of the funds will be used to support the budget and the other half will be used to increase foreign reserves.