Zambia to receive $338 million in latest IMF Staff-Level Agreement

In the third review of the Extended Credit Facility (ECF) Programme, the government has revealed that it has successfully reached an agreement on further economic policies and reforms.

Part of the review is that Zambia will receive $338 million.

The Finance and National Planning Minister, Situmbeko Musokotwane expressed his gratitude to the IMF for considering Zambia’s request for additional financial support to aid its response to the drought.

The aim of the ECF is to restore macroeconomic stability in Zambia.

The IMF hopes to achieve this by:

·      Restoring sustainability through fiscal adjustment and debt restructuring

·      Creating room in the budget for much-needed social spending

·      Reducing the risk of corruption by improving public financial management

A team from the IMF led by Mercedes Vera Martin, IMF mission chief for Zambia, held in-person discussions with the authorities from Lusaka from 24th April to 7th May.

At the conclusion of the talks, Ms. Vera Martin said, “In the context of significant macroeconomic challenges that have become more complex to manage due to the severe drought, staff also considered the authorities’ request for an augmentation of the IMF’s financial support to Zambia from the approved SDR 978.2 million (about $1.3 billion) to SDR 1,271.66 million (about $1.7 billion). Once approved by IMF Management and completed by the Executive Board, Zambia will have access to SDR 433.34 million.”

Zambia has expressed its need to utilize the financial support by ensuring that emergency relief reaches the most vulnerable in society, whilst sustaining efforts to secure debt sustainability.

SOURCE:openzambia.com