The lending arrangement being pursued with the International Monetary Fund (IMF) was crucial for Zambia’s economic recovery, the country’s central bank said on Wednesday.
Denny Kalyalya, Bank of Zambia (BoZ) Governor said failure to secure the financing arrangement will result in increased hardships for the country.
He told reporters during a press briefing that getting the financing deal was crucial as it was a first step that would unlock other financing arrangements for the country.
“It is an avenue that can deliver results because it will open the gate for other financial resources,” he said.
He said the arrangement was enough to send a positive message to the international markets, adding that the statement by IMF Chief Kristalina Georgieva recently where she expressed optimism about reaching the arrangement was well received by the international markets.
The IMF chief said recently that Zambia has done “fantastic” work in terms of debt transparency and engaging creditors although she noted that more work was needed on financial assurances.
But the central bank chief said the country has come a long way in seeking for a financial arrangement with the international lender since 2016.
According to him, the government was putting more emphasis on ensuring that everything was done in order to secure the financing arrangement. Enditem