IMF increases it’s financial support from $1.3 billion to  $1.7 billion | AEF Group

IMF increases it’s financial support from $1.3 billion to $1.7 billion

The country’s debt rework had significant implications for investment, economic growth, and local financial markets.

by Victor Osaronwafor

The International Monetary Fund (IMF) recently completed a third review of Zambia’s Extended Credit Facility. As part of this review, the IMF approved an immediate disbursement of approximately $569.6 million. Additionally, the IMF’s board granted a request to raise its financial support from the initial $1.3 billion to $1.7 billion. This increased funding aims to assist Zambia in responding to a severe drought that has led to crop losses and affected power generation in the southern African country.

Zambian authorities have made progress on economic and structural reforms while addressing humanitarian challenges due to the drought. Going forward, coordinated macroeconomic policies, continued efforts to restore fiscal and debt sustainability, and consistent reform implementation will be crucial to managing the drought’s impact, maintaining macroeconomic stability, and promoting growth

Copper-rich Zambia recently emerged from default after a lengthy debt-restructuring process. The country’s debt rework had significant implications for investment, economic growth, and local financial markets. In response to the drought, Zambia’s finance minister requested additional spending to help repay external debt and address the crisis

This move by the IMF underscores its commitment to supporting member countries during challenging times, ensuring economic stability and growth.

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