TEHRAN, 31 August 2021, (TON): Zambia’s new Finance Minister, Situmbeko Musokotwane, has said in an interview that it was critical to agree to a lending programme with the International Monetary Fund (IMF) because it would give creditors confidence and the government cheaper and longer financing.

Musokotwane, appointed by recently elected President Hakainde Hichilema, faces the daunting task of trying to pull the southern African country out of a protracted debt crisis and has pledged to prioritise talks with the IMF.

Finance minister said “Zambia to default on foreign debt.”

In an interview, he told public broadcaster ZNBC he was confident Zambia would get an IMF programme before the end of the year and thereafter restructure its debt.

The government has a $750m Eurobond due next year but says it cannot repay it.

He said “we don’t have the money to pay back. This is why it is important that we get on (an) IMF (programme) so that we can re-arrange not to pay next year. I am 100 percent confident that it will be done.”