The International Monetary Fund (IMF) has granted approval for the immediate disbursement of $189 million to Zambia under the Extended Credit Facility Arrangement. This brings the total disbursements under the arrangement to approximately $374 million, aimed at supporting Zambia’s homegrown economic reform plan to restore macroeconomic stability and foster inclusive and resilient growth.
The IMF Managing Director, Kristalina Georgieva, commended Zambia for its commendable efforts in stabilizing the economy over the past two years despite facing significant external shocks. Georgieva emphasized the importance of sustaining strong policies to safeguard macroeconomic stability, restore debt sustainability, and promote sustainable and inclusive growth.
Zambia’s Extended Credit Facility Arrangement was approved on August 31, 2022, for a total of $1.3 billion. The recent agreement reached on June 22, 2023, between Zambian authorities and the Official Creditor Committee aligns with the parameters set by the IMF program.
The credit facility from the IMF aims to support Zambia’s ongoing economic reform efforts, as the country continues to address its fiscal challenges and work towards restoring financial stability. The disbursement of these funds will provide much-needed support to Zambia’s reform agenda, allowing the government to implement policies and measures that will foster sustainable and inclusive growth.
The approval of the credit facility by the IMF reflects the confidence of the international community in Zambia’s commitment to economic reform and its willingness to address its fiscal and debt challenges. The funds will contribute to the country’s overall economic recovery and help create a favorable environment for sustainable development and investment.
As Zambia moves forward with its reform agenda, the government and relevant stakeholders will continue to work closely with the IMF to ensure the effective implementation of the Extended Credit Facility Arrangement. This partnership will play a crucial role in supporting Zambia’s efforts to achieve long-term economic stability, reduce poverty, and create opportunities for all citizens.