The PF government has confirmed that it has been put on sanctions by the African Development Bank (AfDB) But says ‘don’t panic’.
Government Spokesperson Dora Siliya has confirmed that the Africa Development Bank(AfDB) has imposed fiscal sanction on Zambia.
This follows the failure by Zambia to clear monthly payment of loan interest arrears of $1.4million.
Ministry of Finance is said to be making frantic effort to clear the outstanding amount.
Zambia, Sudan, Somalia and Zimbabwe are under sanctions over failure to meet monthly commitments.
The ministry of finance claims it failed to pay back $1.4 million to the AfDB due the depreciation depreciation of the Kwacha.
AFRICAN DEVELOPMENT BANK PUTS ZAMBIA UNDER SANCTIONS, SUSPENDS ALL PROJECTS
The African Development Bank (AfDB) has put Zambia under sanctions for failing to repay Loans.
The sanctions entail that the AfDB has suspended releasing money to Zambia on all existing projects funded by the bank. It also means AfDB will not approve any new loan or project to Zambia.
Zambia joins Zimbabwe, Somalia and Sudan on the list of blacklisted countries.
AfDB is one of the major financiers of the Zambian government.
Since commencing operations in Zambia in 1971, the African Development Bank has committed more than $2 billion to public sector infrastructure projects including agriculture, industry, water and sanitation, energy and transport.
Additional support from the Bank, valued at around $150 million, has been allocated to the country’s private sector. Zambia also benefited from debt relief valued at $452 million under the HIPC and the Multilateral Debt Initiatives.
Just last April (2019) The African Development Fund approved $11.1 million to support Zambia’s public finance and economic management as part of efforts to restore fiscal stability and improve livelihoods in the middle-income.