IMF Approves Final Review for Loan to Zambia, Unlocking $190 Million
In a significant development for the Southern African nation, the International Monetary Fund (IMF) has approved the final review of Zambia's lending program. This move is expected to unlock $190 million in funding, providing much-needed relief to the country's struggling economy.Zambia Seeks IMF Loan to Avoid Debt Default
In 2022, Lusaka had sought a massive $1.3 billion loan from the IMF, which was later revised to $1.7 billion. The country's economic woes were compounded by double-digit inflation and a projected budget deficit. However, Zambia withdrew its request for an additional $145 million loan extension, opting instead to rely on domestic revenues, markets, and other partners to plug any remaining financial gaps.
IMF Review Marks Sixth and Final Credit Facility
The IMF's sixth and final review of Zambia's Extended Credit Facility (ECF) arrangement is a significant milestone for the country. The Fund has been providing critical support to Lusaka since 2022, helping it avoid debt default and stabilize its economy. With this final review, the IMF has approved $190 million in funding, marking a major breakthrough for Zambia's economic recovery.
Government Projects Improved Financial Forecast
The Zambian government is optimistic about its financial prospects, projecting an improved budget deficit and growth exceeding 6 percent. This positive outlook is expected to attract more investment and support from international partners, further solidifying Zambia's economic recovery.
The IMF's approval of the final review for Zambia's loan marks a significant step forward in the country's economic journey. With $190 million unlocked, Lusaka can now focus on implementing reforms and stimulating growth. As the country looks to the future, it is clear that collaboration with international partners will be crucial in achieving its development goals.
