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Zambia and the International Monetary Fund (IMF) have reached a Staff-Level Agreement, which will trigger the fourth disbursement of about US$187 million upon approval under the Extended Credit Facility (ECF) programme.
The agreement, based on economic policies and reforms, followed the successful third review of the ECF programme.
This Staff-Level Agreement included a request by the government to access an additional 30 percent of quota (SDR293.46 million or US$388 million) to preserve macroeconomic stability and support response to external shocks.
Approval by the IMF Executive Board is required, which would guide programme implementation for the next 12 months.
A statement issued by Zambia’s Ministry of Finance and National Development on Tuesday indicated that the IMF noted the ongoing drought had created a more challenging economic environment for the country.
Commenting on the development, Finance and National Planning Minister, Situmbeko Musokotwane, said the Staff-Level Agreement was a testament to Zambia’s determination to rebuild macroeconomic stability.
Musokotwane also said Zambia’s commitment to debt sustainability and its ongoing efforts to conclude the debt restructuring process within IMF programme parameters.
“We want to thank the IMF Mission to Zambia for completing the third programme review, which has culminated in a Staff-Level Agreement for the ECF Programme.
“I further wish to thank the Fund for considering our request for additional financing to respond to the ongoing drought that has created a more challenging economic environment. We are happy that the IMF acknowledges the efforts we are making to revitalize Zambia’s economy and achieve sustainable growth,” he said.
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