given a large financial assistance to India for economic development, such as electric power, transport, communication, irrigation projects, and steel industry (Mukher, 2018). The World Bank loans has helped India to be a global player. Zambia Zambia has been a member of IMF since 1965 and the country has $64.28 million outstanding loans. There are special drawing rights of 192,41 million. Recently, there was been a many rejections of IMF loans to Zambia due to the country’s debt (IMF, 2018). When analyzing Zambia, the results are opposite as compare to India. The SAPs have placed serve hardship on Zambia’s populations while failing the promise to have economic recovery and reduced
IMF Research Paper 3 unemployment. The loans conditions and terms were similar in SAP with some minor modification, such as government cut social sector spending, domestic industry harmed due to not being able to compete with foreign companies as well high interest rates burden the country. Zambia has been a member of IMF since 1965 and the country has $64.28 million outstanding loans (IMF, 2018). In 2018, The World Bank has lent Zambia one loan. The loan was for the Additional Financing for Zambia Strengthening Climate Resilience Project and the amount was 14.6 million (The World Bank, 2018). The World Bank is one of nine cooperating partners providing direct budget support to the Zambia Government. The World Bank supports Zambia in order to promote economic diversification and private sector development as well as enhancing human development and reduce poverty. Faster economic recovery was hindered by large government payments which put pressure on the country’s financial sector. Zambia’s outstanding loans rose
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- Spring '19
- Business, Debt, International Monetary Fund