The Executive Board of the International Monetary Fund (IMF) approved on Tuesday (27) the sixth and final review of Zambia’s extended credit program, paving the way for the disbursement of $190 million, the institution said in a statement.
In 2022, the southern African country reached a $1.3 billion financing agreement with the IMF to support the economy in the context of debt default, an amount that would later be extended to $1.7 billion.
“Despite external and internal shocks, Zambia has significantly reduced macroeconomic imbalances, made considerable progress in debt restructuring, and implemented sustained fiscal consolidation while safeguarding social spending,” said IMF Deputy Managing Director Nigel Clarke.
The government in Lusaka initially wanted to secure a one-year extension of the agreement but eventually backed down, choosing to let the program expire without submitting a formal request for an extension. No justification was given for the decision.
Zambia, which had hoped to secure an additional $145 million through the extension, will hold elections in August, with President Hakainde Hichilema running for re-election.
Source: Reuters
