Following the second review mission under the Extended Credit Facility (ECF) Programme, Zambia and the IMF staff have reached a Staff-Level Agreement (SLA) on economic and financial policies that will anchor programme implementation for the next 12 months. The SLA is subject to approval by IMF Management and the Executive Board.
Approval by the IMF Executive Board will trigger the third disbursement of about $184 million.
Commenting on the development, Minister of Finance and National Planning, Dr Situmbeko Musokotwane, MP, says:
“The achievement of the SLA reflects Zambia’s commitment to restore macro and debt sustainability and to continue efforts to reach an agreement in the debt restructuring that is consistent with the IMF program parameters. We are pleased to see that the IMF continues to recognise the ongoing work we are doing to reinvigorate Zambia’s economy and attain sustainable growth. We hope to complete the debt restructuring as soon as possible and are engaging closely with all our creditors to achieve this.”
IMF staff commended Zambia for substantial progress in restoring macro and debt sustainability and implementing the national economic reform agenda.
Zambia’s ambitious structural reforms have contributed to raising domestic revenues, strengthening public finance and debt management, and increased transparency.
The government was also able to finance vital social spending on healthcare, education and support for the most vulnerable.
The IMF Programme provides the much-needed support for government to achieve fiscal and debt sustainability, reduce poverty, and lay a solid foundation for inclusive and sustainable growth.
The SLA on the second successful review marks an important step in Zambia’s cooperation with the IMF and the country’s journey towards economic recovery.