World Bank withholds funding to Zambia

 

The Zambian 2021 budget is thrown in further turmoil as the World Bank resolves to halt its budgetary support to Zambia until after 2021. Our Ministry of Finance sources have informed us that the halting of the budget support is on account of the World Bank not getting what is termed as a letter of comfort from the IMF.

This halted budgeted support is part of the K30.2 billion foreign financing and grants – ZMW 30.62 billion. Our sources have informed us that the Minister of Finance, Bwalya Ngandu, is contemplating to resign. He has told his close associates that he doesn’t want to be remembered as the one who presided over the collapsed Zambian economy, the Zimbabwean style. He says most things that happen like the dismissal of the Governor of Bank of Zambia. He just heard it through gossip.

The Ministry of Finance source also predicted that the exchange rate will be more than K50 per dollar by election time. Our reserve standing $750 million will be depleted further in October 2020 when the second Eurobond debt servicing amounting to $157 million is due.

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