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IMF says talks with Zambia still on hold

IMF says talks with Zambia still on hold

Status quo in negotiations between the International Monetary Fund( IMF) and Zambia

In order to lend $1.3 billion to Africa’s second largest copper producer, the IMF says it is waiting to see how Lusaka will reconcile its debt management plans.

There are no discussions on possible Fund support for the programme as the authorities’ borrowing plans undermine the country’s debt sustainability and macroeconomic stability. a spokesman for the Bretton Woods Institution said.

In February, the IMF rejected Zambia’s borrowing plans, saying they might make it more difficult for the southern African country to borrow.

Zambia has raised its 2018 forecast of the country’s budget deficit to 7.8% of gross domestic product from an initial estimate of 6.1%.

The country’s central bank said on Wednesday that keeping the budget deficit within programmed limits is still a challenge. It added that external debt poses additional problems for the nation.

Reuters