Monday, February 14, 2011

IMF calls on Zambian govt to borrow if the SNDP is to succeed

THE INTERNATIONAL MONETARY FUND HAS EXPLAINED THAT GOVERNMENT NEEDS TO SEEK EXTERNAL BORROWING IF THE RECENTLY LAUNCHED SIXTH NATIONAL DEVELOPMENT PLAN IS TO SUCCEED.
THE K132 TRILLION  WORTH SIXTH NATIONAL DEVELOPMENT PLAN LAUNCHED ON FEBRUARY 4TH  BY PRESIDENT RUPIAH BANDA IS INTENDED TO AMONG OTHER THINGS, FOSTER INFRASTRUCTURE DEVELOPMENT AND FIGHT POVERTY IN THE SOUTHERN AFRICAN NATION.
RESIDENT REPRESENTATIVE OF IMF  PERRY PERONE  HAS ADVISED ZAMBIA TO NEGOTIATE THE BEST LOAN TERMS WHEN CONTRACTING EXTERNAL DEBT FOR THE IMPLEMENTATION OF THE SNDP.
MR PERONE SAYS  EVEN THOUGH THE FISCAL SPACE FOR DEVELOPMENT EXPENDITURES WILL BE AUGMENTED UNDER THE PROPOSED REVENUE AND EXPENDITURE PROJECTIONS, THE MAGNITUDE OF THE PROPOSED DEVELOPMENT SPENDING WILL REQUIRE AN INCREASE IN EXTERNAL BORROWING, SOME OF WHICH WILL BE ON NON CONCESSIONAL TERMS.
HE SAYS  THE IMF ALSO SUPPORTED THE SNDP'S GOAL TO FOSTER BROAD BASED ECONOMIC GROWTH, STATING THAT THIS WILL HELP TO GENERATE JOBS AND REDUCE POVERTY.
HE SAYS  DURING THE LAST FIVE YEARS, ZAMBIA ENJOYED SUSTAINED HIGH REAL ECONOMIC GROWTH AS INFLATION WHICH HURTS THE POOR MORE THAN THOSE THAT ARE WELL OFF WAS LOWERED TO SINGLE DIGITS WHILE DOMESTIC AND EXTERNAL GOVERNMENT DEBT WAS KEPT TO MANAGEABLE LEVELS.
ZAMBIA’S PROJECTED RESOURCE ENVELOP FOR THE GROWTH OF THE SNDP IS ZMK 132 TRILLION TO BE MET BY ZMK103 TRILLION OF DOMESTIC RESOURCES AND ZMK 29 TRILLION OR 22% FROM EXTERNAL ASSISTANCE AND A PRUDENT AMOUNT OF EXTERNAL BORROWING.
GOVERNMENT WHICH HAS EMBARKED ON A DELIBERATE POLICY OF BUILDING FOR THE FUTURE TOGETHER WITH ITS PEOPLE’ SAID THROUGH THE PLAN, IT  SEEKS TO CONTINUE FOCUSING ON INVESTMENT IN INFRASTRUCTURE, MAINLY ENERGY, ROAD, RAILWAY AND AIR TRANSPORT.
IN ADDITION, ZAMBIA SEEKS TO INVEST IN HUMAN RESOURCE DEVELOPMENT IN EDUCATION SKILLS, HEALTH, WATER AND SANITATION. DURING THE PERIOD, 2011-2015, THE PROPORTION OF PEOPLE LIVING IN EXTREME POVERTY IS EXPECTED TO DECLINE TO 29% PERCENT FROM 37% RECORDED IN 2006.
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