Govt denies alleged rumours of IMF-imposed loan restrictions, restates commitment to transparency

The Zambian government has dismissed as false reports circulating online that the International Monetary Fund (IMF) has instructed it to stop contracting new loans until the country’s debt restructuring is completed.

In a statement issued on Wednesday, the Ministry of Finance and National Planning clarified that no such directive had been issued by the IMF.

“The Ministry wishes to categorically dismiss these sentiments. No such instructions have been issued. Government remains guided by its own processes, which include undertaking financing needs assessments, evaluating debt sustainability, and adhering to a parliamentary-approved annual borrowing plan before contracting any loans,” the statement read.

The Ministry reaffirmed its commitment to transparency in public financial management, citing significant reforms such as the enactment of the Public Debt Management Act No. 15 of 2022, which mandates parliamentary oversight for all public borrowing.

Meanwhile, the IMF has commended Zambia for its performance in implementing economic reforms and debt management measures.

IMF Deputy Managing Director Nigel Clarke described Zambia’s progress as “encouraging” and urged authorities to intensify efforts in mobilising domestic revenue.

Clarke made the remarks during a courtesy call by Zambia’s Finance and National Planning Minister, Situmbeko Musokotwane, at the IMF Headquarters in Washington, D.C., on the final day of the IMF and World Bank Group Spring Meetings.

Musokotwane reiterated government’s commitment to sustaining economic growth through home-grown reform policies aimed at improving the business environment, creating wealth, and generating employment for young people.

“The positive sentiment and increased investor interest in our economy are partly a result of the improved fiscal discipline witnessed by both our citizens and the international community, as well as our restraint from unsustainable borrowing,” he said.

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