It also commended the authorities for the progress made in implementing structural reforms. However, the Fund noted that the main medium-term challenge remained that of creation of fiscal space for priority spending, enhancement of economic diversification and poverty reduction. 54. Total disbursed poverty reduction budget support (PRBS) in the fourth quarter of 2010 amounted to US $ million from; the African Development Bank (US $ million), European Union (US $ million), Sweden (US $ million) and Germany (US $ million). This brought the total disbursed PRBS to US $ million for the year against the projection of US $ million. The variance of about US $ million is largely attributed to exchange rate variations. 55. In addition, a total of US $ million mining tax revenue was received from First Quantum Mining Plc, for the benefit of Government, while Bank of Zambia foreign exchange purchases from the market amounted to US $ million during the period under review. The above receipts were against payments to PTA Bank (US $ million) for oil procurement and debt service payments (US $ million). Inflation outlook for the first quarter of 2011 56.
The volume of ATM transactions also increased by 5.1% to 6,654,992 (third quarter 2010: 6,333,073). Similarly, the value increased by 17.1% to K3,397.3 billion (third quarter 2010: K2,897.6 billion). 50. The total volume of cheques returned unpaid on account of insufficiently funded accounts increased by 5.4% to 4,428 (third quarter 2010: 4,202) cheques while the value decreased by 8% to K36.2 billion (third quarter 2010: K35.3 billion). The Bank would like to urge members of the public to always ensure that they fund their accounts sufficiently whenever they issue cheques. This will ensure that they do not face criminal charges under the National Payment Systems Act for bouncing cheques dishonestly or with intent to defraud. Economic programme 51. A follow-up International Monetary Fund (IMF) Mission visited the country from 28th October to 3rd November 2010 to conclude discussions for the 5th Review under the Extended Credit Facility (ECF) arrangement. The mission had fruitful discussions with the Zambian authorities and reached agreement on a set of macroeconomic policies and structural measures for the remainder of 2010 and 2011. 52. The IMF Executive Board meeting was held on 10th December 2010 and completed the fifth review of Zambia’s economic programme. This resulted in the immediate disbursement of an amount equivalent to SDR 18.395 million (about US $ million), bringing total disbursements under the ECF arrangement to SDR 201.7 million (about US $ million). 53. The IMF mission commended the authorities for Zambia’s economic prospects that have continued to improve as well as for having sound macroeconomic policies.