Wednesday, March 2, 2011

IMFgave Zambia more than $300 million loan last year

Global lender International Monetary Fund gave Zambia more than USD 300 million loan last year after completing a review of the country’s economic program under the Extended Credit Facility.
The central bank said the lender provided USD 310.3 million credit for Zambia following a series of meetings held since October to December to enable the country meet various macroeconomic policies for the period 2010 to 2011.
According to the statement, after the IMF meeting was completed, Zambia was eligible to secure USD 28.3 million bringing the total amount of funds disbursed to the country under the facility to date to USD 310.3 million.
The IMF commended the Zambian government for the country’s economic prosperity which it said have continued to improve as well as having sound macroeconomic policies and further commending the government for the progress made in implementing the structural reforms.
However, the IMF noted that the main medium term challenge remained that of creating fiscal space for priority spending, enhancing economic diversification and poverty reduction.
Meanwhile, preliminary data indicates that Zambia recorded an overall balance of payment support deficit of USD 71.1 million during the fourth quarter of last year compared to the surplus of USD 330.2 million recorded in the third quarter the same year and this was largely because of unfavorable performance in both the current account balance and the capital and financial account.
During the period under review, the current account surplus declined to USD 391 million from USD 399.1 million recorded the previous quarter because of a decline in the merchandise trade surplus and widening of the net income deficit.
The merchandise trade surplus declined by 9.2% to USD 771.4 million in the Q4 of last year from USD 849.5 million recorded in the third quarter. This follows an increase in imports which outweighed the rise in exports.
Mechandized export earnings rose by 5.2% to USD 2,040.9 million from USD 1,939.2 million recorded the previous quarter. The increase was recorded on account of an increase in metal export earnings by 7.3% to USD 1,728.5 million from USD 1,610.2 million the previous quarter.
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