ZAMBIA CLEARS IMF 1985 DEBT
Zambia has cleared its arrears to the
IMF for 1985 with a 145 mln dlr bridging loan from Standard
Chartered Bank, central bank president Leonard Chivuno said.
    The government had obtained a further loan of 45 mln dlr
from the Bank of Credit and Commerce to help pay off its
remaining 165 mln SDR arrears for 1986 and is currently
negotiating loans from two other banks to complete payment, he
told a press conference .
    To restrict liquidity all commercial banks will have to
make a supplementary deposit with the Bank of Zambia,
equivalent to 10 pct of their demand deposits, Chivanu added.
    Following the IMF talks, the fixed exchange rate will be
adjusted against a basket of five major currencies, but it will
not fall below 12.50 kwacha per dollar, Chivuno said.
    He was speaking after three weeks' discussions with the IMF
centred on the revision of the exchange system.
    Diplomatic sources said the talks had gone well and a
Zambian delegation would leave for Washington in about three
weeks to complete negotiations with the IMF and World Bank on a
revised economic adjustment programme.
    One western diplomat said the two institutions had promised
"big support to help Zambia keep its head above water."
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