Zambia IMF bailout talks make ‘progress’ : president

Lusaka, Sept 30 (AFP/APP):Zambia’s President Hakainde Hichilema said Thursday he had made progress in talks with the International Monetary Fund on a bailout to resolve his nation’s debt crisis.

The copper-rich nation made Africa’s first coronavirus-era sovereign debt default last year, and requested funding from the IMF in December to finance reforms.

“We explained to them our approach to running the country, we explained that things would be different,” he told a press conference.
“We are very pleased with those meetings and you will see some progress around there,” he said, adding that the finance minister would provide further details on Friday.

Hichilema, elected in August, has vowed to get the southern African country’s ailing economy back on track and finalise difficult bailout negotiations initiated under the previous government.
He took a six-day trip to the United States last week, when he met with the IMF and the World Bank.

Hichilema’s predecessor Edgar Lungu is accused of heavy borrowing to splurge on infrastructure projects during his six-year presidency.
External debt ballooned to almost $12 billion (10.3 billion euros) in 2020, and the former government missed two eurobond payments before applying for loan restructuring.

Around a third of Zambia’s debt is owed to China and Chinese creditors, according to official figures.
But a study by the China Africa Research Initiative published this week found that Zambia’s debt to China stood at $6.6 billion — almost double the amount disclosed by Lungu’s administration.

Talks with the IMF started on a bad footing in February as Lungu focused on curbing the setbacks of coronavirus and garnering public support ahead of the August poll, which he lost by almost a million votes.
Hichilema promised to “restore Zambia’s credibility” and reach an agreement that would allow him to kickstart “the programmes that we have been wanting to do”.

IMF staff are currently in Zambia for a five-day visit to assess the new administration’s policies and reforms.