Zambia, IMF reach staff level agreement on economic policy reforms
By Paul Shalala
Zambia and the International Monetary Fund -IMF- have reached a staff level agreement which will make the country eligible to access 185 million dollars from the Special Drawing Rights.
Zambia will access the money once the staff level agreement is approved by the IMF management and Executive Boards.
This follows discussions on the IMF supported Extended Credit Facility held in Zambia from October 2nd to 15 this year which also continued during the IMF and World Bank Annual Meetings in Washington DC.
IMF Chief of Mission to Zambia MERCEDES VERA MARTIN says she is pleased that Zambia had reached a staff level agreement on economic policies and reforms for the fourth review of Zambia’s Extended Credit Facility arrangement.
Ms. MARTIN says the medium-term outlook remains favorable but with significant downside risks as growth in 2025 is projected at 6 point 2 percent as electricity output is not expected to fully recover.
She says this projection is bolstered by a recovery in agricultural and mining production and the completion of the debt restructuring and is underpinned by prudent policies and ongoing reforms.
Ms. MARTIN says the Zambian government has reiterated its strong commitment to prudent macroeconomic policies and ambitious reforms to sustain economic stability and boost medium-term growth.
She has thanked the Zambian authorities for their constructive dialogue and strong cooperation during the discussions.
This is according to a statement issued by the IMF to ZNBC News in Lusaka.
Finance and National Planning Minister, SITUMBEKO MUSOKOTWANE says reaching the Staff Level Agreement during a period when the country is facing the worst drought is a testimony of the confidence that the IMF and the international community has in the gove
nment.
Dr. MUSOKOTWANE says the Government is pleased with the progress made in deliberations with the IMF staff team.
He says Government will continue to work towards achievement of result alignment to the expectations of citizens, other stakeholders and the international community.
Dr. MUSOKOTWANE, who was reflecting on the Staff Level Agreement, says Government will continue to work towards achieving the objectives of the home-grown reform agenda targeted at restoring macro-economic stability and attain debt sustainability among others.
This is according to a statement issued to ZNBC News by Secretary to the Treasury, FELIX NKULUKUSA
