ZAMBIA TO ACCESS ADDITIONAL US$388 MILLION UNDER IMF’S EXTENDED CREDIT FACILITY
Zambia is set to access an additional US$388 million pending approval under the Extended Credit Facility-ECF Programme of the International Monetary Fund-IMF.
This follows a Staff Level Agreement between the government and IMF on economic policies and reforms following the third review of the ECF programme.
A statement from the Ministry of Finance and National Planning indicates that the agreement includes a request made by the government to access an additional 30 per cent of the quota to preserve macroeconomic stability and support response to external shocks.
The Staff Level Agreement is subject to approval by the IMF Executive Board which will guide implementation for the next 12 months and trigger the fourth disbursement of about US$187 million upon approval.
Commenting on the development, Minister of Finance and National Planning, Dr Situmbeko Musokotwane, has thanked the IMF for considering Zambia’s request for additional financing to respond to challenges brought by the recent drought.
Musokotwane has further expressed happiness that the IMF acknowledges efforts being made by the country to revitalize Zambia’s economy and achieve sustainable growth.
The IMF fielded a mission to Zambia from 24th April to 7th May, 2024, as part of the 3rd review of the ECF Programme, with discussions after that continuing virtually.
The IMF approved an Extended Credit Facility Programme for Zambia on 31st August, 2022, earning the country a first disbursement of US$186 million.
The first review was approved by the IMF in April 2023 and its completion enabled the 2nd disbursement, giving Zambia access to approximately US$188 Million.
In December, 2023, the IMF approved the 2nd review of the ECF which resulted in the disbursement of approximately US$187 million.
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