GOVERNMENT EXPLAINS $275 MILLION WORLD BANK LOAN

By Prisca Lumingu

Government has explained that the US$275 million approved concessional loan by the World Bank will be disbursed in two tranches, with US$175 million disturbed immediately after the signing of the agreement while US$100 million in the next three months.
Finance and National Planning Minister Situmbeko Musokotwane says this is to allow the Government additional time to complete key components of the reform program.
In a statement issued to Millennium radio, Dr Musokotwane says the development project terms are highly concessional with a grace period of 5 years and a maturity period of 30 years.
He says the acquisition of the financing is part of the Annual Borrowing Plan approved by Parliament in fulfilment to the provisions of the Public Debt Management Act of 2022.
Dr. Musokotwane says the Development Policy Credit will mainly support the Government’s post-COVID recovery and inclusive growth agenda by supporting policy and institutional reforms that aim to restore fiscal and debt sustainability, increase farmer productivity and access to agricultural markets.
He says the reforms also aim to ensure sustainable access to energy and enhance access to finance and private sector development.