- Nineteen prisoners use cutlery to break out of cells at Winchester prison
- France wants progress in Ukraine before Russia returns to G7
- Italy president begins talks to seek way out of government crisis
- Italian PM expected to resign as political chaos deepens
- Russia says US cruise missile test ‘regrettable’
- Kremlin - No date set for Normandy talks on Ukraine despite Macron meeting
- Egypt court hands out 6 death sentences on terror charges
- Putin says Russian nuclear explosion poses no threat
- Russian panel eyes alleged foreign interference in protests
- Gran Canaria wildfire triggers evacuation of thousands of people
- PM Johnson calls on Germany and France to compromise on Brexit
- Sudan's ex-president Bashir arrives at corruption trial
TEHRAN, August 25 - The International Monetary Fund (IMF) said its discussions with Zambia over an aid programme are still on hold because the nation’s borrowing plans remain unsustainable.
TEHRAN, Young Journalists Club (YJC) -The International Monetary Fund (IMF) said its discussions with Zambia over an aid programme are still on hold because the nation’s borrowing plans remain unsustainable.
In February the fund rejected Zambia’s borrowing plans, saying they risked making it harder for the southern African country to sustain its debt load.
“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,” an IMF spokesman told Reuters.
Zambia has raised its 2018 forecast for the country’s fiscal deficit to 7.8 percent of gross domestic product from an initial estimate of 6.1 percent.
The nation’s central bank said on Wednesday that containing the fiscal deficit within programmed levels remained a challenge and external debt posed additional challenges.
Zambia, with an external debt of $8.7 billion, said in December last year that it would begin refinancing Eurobonds worth a total $3 billion in 2019 to reduce the cost of debt servicing.
Zambia’s Finance Ministry said in a statement late on Friday that an IMF staff mission would be visiting in the third quarter for consultations to assess the nation’s economy.
The government was taking measures to strengthen the implementation of its medium term debt management strategy, it said.
“The prior actions required to facilitate the recommencement of discussions for an IMF Supported Programme are duly being attended,” the statement said.
Zambia wants a $1.3 billion loan from the IMF but the chance of a deal depends on how Africa’s second-largest copper producer reconciles its debt management plans.
Source:Reuters
Your Comment