The International Monetary Fund (IMF) says it is unable to proceed with discussions on a possible aid package for Zambia.
The IMF says Zambia still has a borrowing plan that remains unsustainable.
An International Monetary Fund team has been holding discussions surrounding Zambia’s debt levels with the country’s officials.
Zambian officials were hoping these discussions which started last month could help address it’s debt, fiscal deficit and related issues.
Government officials however say the discussions did not mean Zambia is requesting for a new IMF aid programme.
The IMF in February rejected Zambia’s borrowing plans, saying they risked making it harder for the country to sustain its debt levels.
An IMF spokesman told Reuters that “There are no discussions on a possible Fund-supported programme given that the authorities’ borrowings plans compromise the country’s debt sustainability, and undermine its macroeconomic stability.”
Zambia austerity measures
In June Zambia said it was rolling out new austerity measures to deal with its rising debt.
The country’s President, Edgar Lungu said the new measures should restore order to the economy.
Zambia’s debt currently stands at about $10bn but some analysts say it could be higher.
The measures will lead to the cancellation of new loans and restrict travels of state ministers.
Such “ghost workers” are said to have claimed substantial amount of monies in salaries.
What are Zambia’s economic issues?
Zambia is unable to secure funds from bodies like International Monetary Fund to re-restructure its economy.
Several loans have been secured with the country struggling to repay. This has contributed to its debt stock.
Zambia has seen a reduction in prices of copper in recent times.
Source: Africafeeds.com
