(2 minutes read)
· Zambia is seeking financial support from the International Monetary Fund ( IMF) to tie down its resource gap to meet development needs
· The Zambian economy has been undergoing years of economic crisis due to variety of reasons including drought, difficulties in the mining , manufacturing sectors and now the pandemic
Zambia is seeking financial support from the International Monetary Fund ( IMF) to tie down its resource gap to meet development needs. Admittedly, the Zambian economy has been undergoing years of economic crisis due to variety of reasons including drought, difficulties in the mining, manufacturing sectors and now the pandemic
Rising debt had pushed the country to adopt austerity measures. Covid-19 had upset the calculations of the government so much so it had become the first country to default on its international debt since the start of the pandemic.
Zambia failed to make the US $42.5 million in interest payments expected by investors on its three Eurobonds in mid- October, despite granting a grace period. Zambia began negotiations to obtain a financing agreement of US$1.3 billion from the IMF in 2017. But the Fund rejected the request several times on the ground that its request was not backed up with a proper bailout plan.
