Zambia will be formally assessed in Spring of 2023 on how the US$1.3 billion Extended Credit Facility (ECF) arrangement is performing by the International Monetary Fund (IMF).
On September 1, the IMF executive board approved US$1.3 billion ECF for Zambia to restore macroeconomic stability and foster higher, more resilient and more inclusive growth.
The executive board’s decision would enable an immediate disbursement of US$185 million.
The 38-month arrangement under the ECF is based on Zambia’s homegrown economic reform plan that aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth
IMF Mission Chief for Zambia Allison Holland said in a statement issued from Washington that they took stock of the authorities promising progress in meeting key commitments under the Fund-supported programme.
“This will be formally assessed in the context of the first review of the Extended Credit Facility arrangement, which is expected to be undertaken in Spring 2023,” she stated.
Holland indicated that the mission discussed progress on Zambia’s debt restructuring talks, noting the ongoing discussions with creditors in resolving technical issues.
She said achieving timely restructuring agreements with external creditors was essential to ensure the expected benefits of the Fund-supported programme.
During the IMF’s staff visit to Zambia, Holland discussed recent macroeconomic and financial sector developments.
“Against an increasingly challenging global economic backdrop, the Zambian economy appears to have remained relatively resilient and inflation has remained in single digits for longer than expected,” Holland said.
The team met with President Hakainde Hichilema, Finance and National Planning Situmbeko Musokotwane, Minister of Green Economy and Environment Collins Nzovu, senior government officials, members of the private sector and development partners.