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.
2Benchmark.
|
|
