IMF approves $184m Extended Credit Facility for Zambia
The Executive Board of the International Monetary Fund has approved, the fourth review of the 38-month Extended Credit Facility -ECF.
The approval triggers an immediate disbursement of the fifth tranche under the ECF arrangement amounting to about 184 million United States Dollars.
This brings the total disbursement under the ECF-supported program to about 1.3 billion United States Dollars.
And, IMF Deputy Managing Director, and Acting Chair NIGEL CLARKE, says the program performance remains satisfactory and authorities are committed to economic stabilization and advancing structural and governance reforms.
Mr CLARKE says this is despite the severe impact of the drought.
He says the contracting agricultural and electricity outputs have slowed growth and accelerated inflation.
And Mr CLARKE says the public debt assessed is sustainable but remains at high risk of overall and external debt distress.
In a statement, Mr CLARKE says the assessment is based on a full post-restructuring macro-framework, incorporating the treatment of official bilateral claims agreed with the official creditors committee, the completed Eurobond exchange, and the agreements in principle with most commercial private creditors.
He says Zambia is expected to reach a moderate risk of external debt distress over the medium term.
Meanwhile, Finance and National Planning Minister SITUMBEKO MUSOKOTWANE, said the Zambian Government is very grateful that the IMF Executive Board has approved the fourth review of the ECF Programme.
Dr MUSOKOTWANE says government is grateful for the continuous support from the IMF Executive Board, Management, and the Staff for the 184 million Dollars.
He says the board approval and the assessment of ZAMBIA’s debt as sustainable is a clear testimony of the confidence that the IMF and the international community have in the progress that Zambia is making.
Dr MUSOKOTWANE says this is targeted at not only restoring macroeconomic, fiscal and debt sustainability, but also enhancing human development and improving the good governance environment to attract investments.
