Zambia fails to acquire loan from IMF, again

Zambia fails to acquire loan from IMF, again

Zambia has failed to to secure a loan from the International Monetary Fund, again.

MMD’s Felix Mutati who heads the PF ministry of Finance was in Washington to beg for a loan during the IMF annual meeting. But he came back empty handed.

The visited Zambia a few weeks back but Mutati and his PF failed even that time to convince the IMF. Mutati flunked accounts in UK three times before trying his luck in politics.

So, The International Monetary Fund will send another team to Zambia in May to continue talks over as much as $1.6 billion in aid the government is seeking after they failed to reach a deal in Washington this month, according to Bloomberg news agency.
“Progress was made but program discussions have not yet been concluded,” Alfredo Baldini, the fund’s representative in Zambia, said Friday in response to emailed questions. “The authorities and IMF staff have agreed that a mission will return to Zambia at the end of May to continue the discussions.”
Finance Minister Felix Mutati had hoped to strike the loan deal to boost Zambia’s foreign exchange reserves while in Washington for the IMF and World Bank Spring Meetings. The government first signalled its intentions to sign a deal in 2014 but has faced a number of delays since.
Africa’s second-biggest copper producer has struggled with ballooning budget deficits in recent years as metal prices fell and government spending grew. A power crisis worsened the situation as government paid hundreds of millions of dollars for electricity imports, while economic growth fell to the lowest since 1998.

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