Business

BoZ boss preaches $1.3bn IMF programme benefits

KALYALYA

KABANDA CHULU, Lusaka
BANK of Zambia (BoZ) Governor Denny Kalyalya says the country may experience severe hardships for generations to come if an International Monetary Fund (IMF) programme is not secured. And Dr Kalyalya has defended the allocation of the US$1.3 billion IMF special drawing rights (SDR) coronavirus relief funds towards recruitment of 44,000 teachers and health workers in 2022. There have been concerns that placing the country on an IMF facility will come with stringent conditions Zambia experienced previously under the structural adjustment programme (SAP). Responding to questions from journalists during a briefing on Wednesday, Dr Kalyalya said discussions with the IMF are more than debt restructuring. “Having an IMF programme is just a component but it shall open doors for the country to access other investment avenues, hence the emphasis that it becomes workable and if we don’t have it, there shall be hardships for generations to come,” he said. “In the past we have struggled to attract direct budget support to increase the country’s resource envelope but an agreement with the IMF will attract further goodwill from the World Bank, African Development Bank and other cooperating partners.” Dr Kalyalya said many developed countries that Zambia looks up to are either on IMF or World Bank programmes. “Besides, we (Zambia) are a bona fide member of these two institutions, hence [we’re] eligible to freely participate in its activities. Let us not lose sight of track of  CLICK TO READ MORE



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