Q FM Africa's Modern Radio
Finance Minister Felix Mutati is optimistic discussions with the International Monetary Fund (IMF) on the possible programme under the extended credit facility will not fail.
Mr. Mutati has told Parliament that government is very keen to accelerate the conclusion of the discussions with the IMF, stating that before the end of this year, a staff mission will come to validate the information that has been prepared before having a timetable for the conclusion of the discussions.
He says significant progress has so far been made in undertaking policy and structural reforms under the economic stabilization and growth programme which the IMF has acknowledged and commended government.
Mr. Mutati says these reforms are in agriculture, energy and financial management.
Mr. Mutati says the main outstanding issues under discussion with the IMF are the need to take measures to slow down on the pace of debt accumulation and to return Zambia’s debt risk from high risk to low risk and scaling up fiscal consolidation measures particularly expenditure restraint.
He says the IMF has asked that these measures be accelerated.
Mr. Mutati states Cabinet on 6th November, 2016 discussed these issues and gave a clear policy direction, which includes developing a new financing profile that will ensure the reduction of debt distress from high to moderate over the medium term and to ensure that debt remains sustainable thereafter.