The Zambian government and the IMF staff team established an agreement at the staff level on the first review of Zambia’s economic program under the ECF structure. After the required finance assurances have been acquired, the staff-level agreement is subject to IMF Management approval and Executive Board deliberation.
From March 22 to April 5, 2023, an International Monetary Fund (IMF) staff team led by Ms. Allison Holland, Mission Chief for Zambia, met in Lusaka to discuss progress on reforms and the authorities’ policy priorities in the context of the first review of Zambia’s 38-month program supported by the Extended Credit Facility (ECF). The agreement was authorized by the IMF Executive Board on August 31, 2022, for a total of SDR 978 million (US$1.3 billion). In addition, the team performed the 2023 Article IV consultation.
“In light of Zambia’s strong performance under the Fund-supported program, the critical next step is to secure an agreement with official creditors on a debt treatment consistent with the IMF Executive Board-approved program parameters and debt targets. We urge official creditors to move forward and agree on an appropriate debt treatment in line with the financing assurances they provided in July 2022. Further delays risk a worsening outlook for Zambia, delaying its return to sustainable growth, and reducing its capacity to repay,” a statement issued by Ms. Holland reads in part.
