PF govt to borrow more, IMF shocked

The PF government with their usual appetite to borrow are in the process of secretly acquiring another loan from the usual expensive commercial window meant to briefly stabilise the falling Kwacha
And sources at the Ministry of Finance have disclosed that there was a quiet disbelief by the International Monetary Fund (IMF) team negotiating with the Zambian government on being informed that the country’s import cover had fallen to slightly below 5 weeks of import cover.
Highly placed sources within the PF government have disclosed that Secretary to the Treasury Fredson Yamba has already been directed and given orders by President Edgar Lungu to start looking for anywhere they can borrow huge sums of money just to artificially save the falling Kwacha while part of the borrowed money will be used to repay the Eurobond whose interest has also gone up.
“You know prices of essential commodities have skyrocketed due to the sharp fall in the local currency and fears are that the situation is now getting out of hand especially with the festival Christmas and new year season coming which will lead to further fall in the currency. The fears are that soon after the festival season, the election campaign mood will heat up and things are not looking well for Lungu with a messed up economic especially with raising cost of living due to falling Kwacha. They are in a panic mood to borrow even from expensive commercial windows attracting high interest rates but as long as it wins them an election it fine for them”, sources have revealed.
Sources have disclosed that for now it is not about the future of the country but merely for political survival in the coming elections.
And the Minister of Finance Alexander Chikwanda, currently meeting with the IMF team passionately pleaded with the IMF that the negotiations should be premised on saving many Zambians whose livelihood is at stake following a collapsed economy.
Mr. Chikwanda pleaded for an emergency balance of payment support to service the Eurobond debt service due and the oil import bill.
The IMF in response said a decision will be made once the review of the economy is completed on soon.

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