Zambia: IMF Approves 569.7 mln USD Disbursement
Headquarter of the IMF, June 2024 Photo: @bmusonza
June 28, 2024 Hour: 2:32 pm
This funding aims to preserve macroeconomic stability and support Zambia’s response to external shocks. Additionally, it includes the fourth tranche under the extended credit facility arrangement, amounting to about 184 million dollars.
On Thursday, a senior government official said that the International Monetary Fund (IMF) Executive Board approved the third review of Zambia’s extended credit facility, greenlighting an immediate disbursement of about 569.7 million U.S. dollars.
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The disbursement includes approval for an additional 30 percent quota, or 385.7 million dollars, requested by the government, said Minister of Finance and National Planning Situmbeko Musokotwane.
This funding aims to preserve macroeconomic stability and support Zambia’s response to external shocks. Additionally, it includes the fourth tranche under the extended credit facility arrangement, amounting to about 184 million dollars.
This new funding will bring Zambia’s total disbursement under the extended credit facility program to around 1.1 billion dollars, Musokotwane said, noting that the IMF’s decision reflects the progress Zambia has made in achieving the goals of its home-grown reform agenda, which focuses on restoring macroeconomic stability, fiscal and debt sustainability, and enhancing human development.
“The board’s approval comes at a critical time when the country needs financing to respond effectively to the drought, which has severely impacted agriculture production and electricity generation,” Musokotwane said in a statement.
The latest announcement from the international lender will boost investor confidence and enhance foreign direct investment, he added, reaffirming the government’s commitment to the reform process. The new funds are expected to strengthen Zambia’s economic reform strategy and increase economic resilience in the face of a challenging global economic environment.
The IMF approved Zambia’s economic credit facility arrangement in 2022, providing 1.3 billion dollars in funding support.
Autor: OSG
Fuente: DW-IMF