Study IMF conditions, CSOs advise
Published On February 28, 2016 » 2366 Views» By Bennet Simbeye » Latest News
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By HOPE BWALYA –
CIVIL Society Organisations (CSOs) have appealed to Government to be cautious as the country seeks assistance from the International Monetary Fund (IMF).
Centre for Trade Policy and Development executive director Isabel Mukelabai said the Government should consider carefully the impact the support programme might have on the average Zambian.
Ms Mukelabai said in an interview that even though it was a positive programme, it was important to consider the present and future implications for Zambia.
“As Government takes this decision, I think it should be cautious of the requirements that come with the support as some programmes come with requirements that might affect the social and economic well-being of the country,” she said.
She said it was important for the Government to have a well-founded economic recovery plan so as to avoid any adverse implications.
Civil Society for Poverty Reduction executive director Patrick Nshindano said the Government should scrutinise the provisions of the programme so that a beneficial stance could be achieved for the Zambians.
“The Government should consider a programme that will provide some cheaper bridging financing, about US$1.3 billion based on the country’s Special Drawing Rights (SDR) to stabilise the Kwacha and prop up foreign reserves,” he said.
Mr Nshindano said the Government should consider a fast-track route that the IMF provided as it had many advantages.
He said one of the advantages was that the repayment interest was low at around two per cent, though the Government would be bound by strict fiscal conditions under heightened scrutiny.
He said the Fund also provided technical assistance in fiscal and monetary stabilisation.
Recently, Finance Minister Alexander Chikwanda announced in Parliament that the Government would seek an IMF support programme in the wake of harsh economic times.

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