IMF warning of global financial crisis calls for alertness – Magande

Government has been advised to take seriously the latest International Monetary Fund (IMF) Financial Stability Report which has warned of a potential global financial crisis.

The latest IMF’s Financial Stability Report has cited dangerous undercurrents, growing trade tensions between the US and China, and disorderly Brexit as the rising threats to the world economy.

Former Minister of Finance Ng’andu Magande says the latest IMF global economic forecast calls for alertness on the part of the Zambian government.

Mr. Magande, who was the Minister of Finance during the 2008 global financial crisis, says government must commit to the implementation of the austerity measures it announced four months ago.

In an interview with QTV News by telephone, Mr. Magande has recalled that during his time as Finance Minister in 2008, austerity measures included reducing salaries of senior government officials.

Mr. Magande says he is then left to wonder how the announced austerity measures will perform if the Patriotic Front government is now increasing salaries for senior government officials.

He is also of the view that with the implementation of the 2019 national budget, it will be necessary to replace some of the austerity measures and loosen some of them to avoid stunted growth in the economy.

Mr. Magande says he further foresees the new taxation system for the mines to have an impact on the economy owing to the fact there was no consultation with mines prior its formulation.

He states that this is why it will be critical for the Ministry of Finance and the Bank of Zambia (BoZ) to be very alert and continue adjusting some of the measures announced in the 2019 budget national budget.