The executive board of the International Monetary Fund on Tuesday approved the sixth and final review of Zambia’s Extended Credit Facility, clearing the way for a $190 million disbursement, the IMF said in a statement.
Zambia agreed a $1.3 billion financing programme with the IMF in 2022 to support its economy as it worked to emerge from a debt default. The programme was later expanded to $1.7 billion.
“Despite external and domestic shocks, Zambia has significantly reduced macroeconomic imbalances, made considerable progress on debt restructuring, and undertaken sustained fiscal consolidation while safeguarding social spending,” said Nigel Clarke, the IMF’s deputy managing director.
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The government in Lusaka had initially sought a one-year extension of the programme but later reversed that position and chose to allow it to expire without requesting an extension. No explanation was given for the change.
Zambia had hoped to secure around $145 million in additional funding through the extension.
The country is due to hold elections in August, with President Hakainde Hichilema seeking reelection.
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Image Credit: VOA
