Q FM Africa's Modern Radio
Peter Sinkamba
Green Party president Peter Sinkamba has described as extremely abrasive recent statements by government towards the International Monetary Fund (IMF).
Mr. Sinkamba says it is now uncertain whether plans announced by Finance Minister Felix Mutati to refinance Zambia’s US$2.8 billion Euro-bonds, with a view to get cheaper, long term loans are still on the cards.
He says without an IMF bailout package, Zambia is certainly unlikely to issue any sovereign bond this year or later.
Mr Sinkamba says it is therefore worrying that Government’s abrasive approach to the IMF may push Zambia’s credit ratings even lower.
He explains that when a country borrows from the IMF, its government agrees to adjust its economic policies to overcome the problems that led it to seek financial aid from the international community.
Mr. Sinkamba has advised against rethinking the IMF bailout programme, stating that without entering one, Zambia is unlikely to pick-up in issuance of any sovereign bond.