Zambia's IMF bailout
An Analysis of the pros and cons of IMF Bailout for Zambia Formed in 1944, the mandate of the International Monetary Fund was to regulate the global regime of exchange rates and international payments. This function, however, collapsed in the 70’s as countries abandoned fixed exchange rates. Recasting itself in a new role, the fund’s primary function became intervention in economic crises of its member states. Since then many nations have turned to the fund when faced with a deteriorating economic situation. The Zambian government under the administration of President Hichilema has made it clear that they intend to pursue talks with the IMF and Minister of Finance, Situmbeko Musokotwane, indicated a bailout package could be finalized before the end of the year. Economists and politicians have expressed varying views on the prospective bailout, with some vouching for it and others strongly opposing it. In understanding the IMF’s role in sovereign debt crises over the years, it is hel