For more information, see Zambia and the IMF

Table 2. Zambia: Prior Actions, Structural Performance Criteria, and Benchmarks
During the First Annual Arrangement Under the Enhanced Structural Adjustment Facility,
January 1, 1999–December 31, 1999

Prior actions

Substantial progress in the privatization of the copper parastatal (ZCCM).

The revocation of import duty and import value-added tax exemptions granted in September-October 1998 to Telecel, Amanita, and electricity company (ZESCO) (Statutory Instruments 113, 114, and 116).

The adoption of an implementation plan for public service retrenchment in 1999, including detailed information on the mode and cost of retrenchment of public servants, as well as the financing arrangements (including budgetary support) for the hived-off institutions.

Structural performance criteria and benchmarks

Action Test Dates
The transfer of ownership of the major asset packages of the ZCCM (the Nchanga and Nkana Divisions, and the Konkola Deep mining project)1 March 31, 1999
The submission to the President of recommendations on the establishment of an actuarially sound civil service pension system1 April 30, 1999
The offering for sale of a minority share and management rights in the telecommunications company (ZAMTEL)1 September 30, 1999
The maintenance of positive real interest rates on treasury bills, as measured by the difference between the three-month moving average of the 28-day treasury bill rate and the annual rate of increase in the consumer price index2 End of each quarter
The abstention from new tax reductions, exemptions, rebates, or any other preferential tax treatment, with the exception of the suspension of import duties on agricultural machinery and equipment, and the tax concessions agreed in the context of the privatization of the ZCCM1 Continuous

1Performance criterion.