AIRLINK 206.90 Increased By ▲ 6.61 (3.3%)
BOP 10.29 Decreased By ▼ -0.20 (-1.91%)
CNERGY 7.12 Decreased By ▼ -0.09 (-1.25%)
FCCL 34.71 Decreased By ▼ -0.23 (-0.66%)
FFL 17.09 Decreased By ▼ -0.33 (-1.89%)
FLYNG 24.86 Increased By ▲ 0.01 (0.04%)
HUBC 131.18 Increased By ▲ 3.37 (2.64%)
HUMNL 14.10 Increased By ▲ 0.29 (2.1%)
KEL 4.92 Decreased By ▼ -0.08 (-1.6%)
KOSM 6.83 Decreased By ▼ -0.20 (-2.84%)
MLCF 44.63 Increased By ▲ 0.01 (0.02%)
OGDC 223.00 Increased By ▲ 0.85 (0.38%)
PACE 7.25 Decreased By ▼ -0.17 (-2.29%)
PAEL 42.60 Decreased By ▼ -0.20 (-0.47%)
PIAHCLA 17.15 Decreased By ▼ -0.24 (-1.38%)
PIBTL 8.48 Decreased By ▼ -0.03 (-0.35%)
POWER 9.12 Decreased By ▼ -0.03 (-0.33%)
PPL 191.70 Decreased By ▼ -1.03 (-0.53%)
PRL 43.30 Increased By ▲ 1.80 (4.34%)
PTC 25.00 Increased By ▲ 0.56 (2.29%)
SEARL 102.99 Increased By ▲ 1.72 (1.7%)
SILK 1.01 Decreased By ▼ -0.04 (-3.81%)
SSGC 42.97 Decreased By ▼ -0.90 (-2.05%)
SYM 18.50 Decreased By ▼ -0.26 (-1.39%)
TELE 9.24 Decreased By ▼ -0.30 (-3.14%)
TPLP 13.25 Increased By ▲ 0.17 (1.3%)
TRG 69.40 Increased By ▲ 3.21 (4.85%)
WAVESAPP 10.50 Decreased By ▼ -0.03 (-0.28%)
WTL 1.81 Increased By ▲ 0.03 (1.69%)
YOUW 4.00 Decreased By ▼ -0.04 (-0.99%)
BR100 12,081 Increased By 41.4 (0.34%)
BR30 36,993 Increased By 304 (0.83%)
KSE100 114,767 Decreased By -37 (-0.03%)
KSE30 36,059 Decreased By -42.8 (-0.12%)
World

IMF to assess plan for indebted Zambia in coming weeks

  • (We) will be assessing in the coming weeks how the IMF could support the authorities' reform efforts through a possible Fund program.
  • Although Zambia is a major copper producer, the southern African country's debt-to-GDP ratio is nearly 140%.
Published December 10, 2020

LONDON: The International Monetary Fund said on Wednesday that it will assess a possible support programme for debt-strained Zambia in the coming weeks.

The Zambian government announced on Tuesday it had formally requested IMF support after the country became Africa's first pandemic-era sovereign default last month when it failed to make a payment on one of its bonds..

"(We) will be assessing in the coming weeks how the IMF could support the authorities' reform efforts through a possible Fund program," Abebe Aemro Selassie, Director of the IMF's African Department said in a statement.

Although Zambia is a major copper producer, the southern African country's debt-to-GDP ratio is nearly 140%.

Selassie said after a visit to Zambia that deep-rooted challenges meant the government's policies would need to be calibrated to restore sustainability while protecting the vulnerable and creating more inclusive growth.

"Authorities reiterated their intention of restoring the credibility of the budget, increasing debt transparency, strengthening public financial management, as well as improving governance and preserving financial stability," he added.

Kevin Daly, an emerging markets portfolio manager at Aberdeen Standard Investments, a member of Zambia's creditor committee, said the talks are at "very early stages, (and) it will be difficult for them to get an IMF deal before the elections; but if they could, it would be a positive."

Next year's general election is scheduled for Aug. 12.

Hopes of an IMF deal lifted Zambian bonds by as much as 1.8 cents on the dollar , taking them to their highest level since late September although they are still changing hands at roughly half face value.

Comments

Comments are closed.