Q FM Africa's Modern Radio
Financial expert Trevor Hambayi has observed that the International Monetary Fund (IMF) financial bailout is the panacea to Zambia’s current financial distress.
Speaking at the Centre for Trade Policy and Development (CTPD) public Forum dubbed Zambia’s Debt Challenge Scaling up the IMF wall, Mr. Hambayi notes that Zambia’s current fiscal position is as a result of the failure to secure the IMF bailout.
He says it is disappointing to note that Government does not seem to have a clear road map on how it will repay the over US$15 billion both external and domestic debt.
Meanwhile Mr. Hambayi says the sinking fund is no longer a solution to the debt repayment for Zambia,STATING that this should have been done in the year 2015 when Zambia only needed US$140 million per year in order to be able to repay the Euro bonds by the year 2022.
He says that the country now needs about US$440 million per year if it is to manage to repay the Eurobonds and other debts by the year 2022.
Speaking at the same public forum, CTPD Executive Director Isaac Mwapopo says Zambia needs to ensure it does not fail to repay any of its debt.
Mr. Mwaipopo says it is for this reason that government should secure the IMF financial bailout as failure to do so will result in the country continuing to experience challenges in service provision in sectors such as health and education.
And Zambia Tax Platform Coordinator Ibrahim Kamara says Zambia needs the IMF package because the current debt position if not addressed may lead to problems for the country.
Mr. Kamara states that the IMF would offer the necessary resources needed in the short term and help the country in ensuring that it does not accrue debt arrears or default.