Zambia Confirms AfDB Sanctions

The Zambian government has confirmed that the African Development Bank has imposed sanctions on the country for failure to service loans, but assured that the nation not to panic as the payments are being processed and will be finalized as soon as possible.

In a statement released to the media, the Ministry of Finance said that it has started processing payment of $ 1.4 Million United States dollars in loan repayment to the African Development Bank.

The Ministry said that the delays in settlement of the bill was due to the sudden depreciation of the kwacha which increased the volume of the Kwacha needed to settle the amount.

The Ministry has further stressed that it must be understood that the government budget is always in kwacha.

The Statement further said that any sudden and significant adjustment in the exchange rate, the ministry of Finance may experience challenges in meeting obligations payable in foreign currency and that this was normal and may occur from time to time.

The government has since assured the nation and all stakeholders that the situation is under control and is not as portrayed on social media.

Government has also acknowledged that the African Development Bank did write to its Ministry of Finance yesterday to inform them that as of yesterday, that the bank had NOT received full payment in respect of the bank group bills.

On 15th December 2019, the African Development Bank in accordance with its policy on loan arrears recovery informed the government that it imposed sanctions on Zambia.

The bank stated that it counted on the government’s prompt action for the timely settlement of the amounts due to enabling the lifting of sanctions.

The Government has since informed the nation that information circulating on social media to the effect that African Development Bank has put Zambia under sanctions for failure to repay loans should NOT cause any panic.

Source: Lusaka Times