Zambia, IMF relationship intact - PS

ZAMBIA’S relationship with the International Monetary Fund (IMF) is still intact and sound, says Ministry of Finance Permanent secretary Mukuli Chikuba.

And Mr Chikuba said about K 2 billion has been released to pay out contractors whose projects have reached 80 percent and above. In an interview, Mr Chikuba said Government and the IMF were discussing various issues relating to the country’s economy. He said this is why the government was committed to ensure that such discussions were not affected even as it deals with the issues of the 2019 budget. “And we do take into account the fact that there are discussions around issues to do with the IMF and they are still going on in the background, to that extent the numbers that we will be putting up (in the budget) are numbers that take that view. Just again to mention that of course IMF money doesn’t come in the budget. IMF money goes into supporting the external sector,” Mr Chikuba said. Mr Chikuba also revealed that about US$10 million had been put into the Sinking Fund. “We have started putting money this year from the budget and just last weekend Cabinet passed medium term expenditure framework which will be made public shortly. So far we had US$20 million just to start with the Fund, and so far we have put half of it into the Sinking Fund,” he added. And Mr Chikuba said about K 2 billion had been released to pay out contractors whose projects have reached 80 percent and above. He said about K4 billion is expected to be paid out to suppliers and contractors up to the end of this year.. “There was a decision that we concentrate on the contractors who have reached 80 percent and above and government started providing money. The funds were supposed to be released to them in the amount of about K4 billion plus. The last one was released at the beginning of this week. “I will not have the full figure for suppliers except to mention that in terms of the provisions we made for dismantling arrears we are on course. The issue around the budget I mean you always have assumptions that underline the budget. And in our assumptions we try to be as prudent as we can. So the financing that you are going to see over the medium term is financing that we think as government is reasonable for us to put on the budget,” Mr Chikuba said.