Zambia is seeking to secure an additional $145 million from the International Monetary Fund (IMF) as part of its request to extend its current loan programme by another 12 months, Finance Minister Situmbeko Musokotwane announced on Tuesday.
The southern African nation, which has long grappled with unsustainable debt levels, is working to stabilize its public finances. The current $1.7 billion Extended Credit Facility (ECF) with the IMF set to expire in October has already disbursed about $1.55 billion to Zambia.
“The IMF programme gives the assurance that we are running things prudently,” Musokotwane told reporters at a press conference. He added, “The additional financial support we are looking at is about $145 million.”
The minister also noted that ending the IMF programme in October, as originally scheduled, would threaten other critical donor support packages, many of which are dependent on the continuation of the IMF’s oversight and involvement.
Investor Sentiment Slightly Upbeat
Zambia’s debt restructuring efforts and commitment to fiscal reforms under the IMF framework have gradually improved investor confidence. According to Tradeweb data, Zambia’s 2053 Eurobond climbed slightly on Tuesday, rising 0.3 cents to trade at 73.09 cents on the dollar.
Last month, Zambia formally announced its intention to seek an extension of the IMF loan programme but had not previously disclosed how much additional funding it hoped to secure.
The IMF programme has been a crucial pillar in Zambia’s broader economic recovery plan following its historic sovereign default in 2020. The country has since worked to negotiate with creditors, restructure its debt, and implement policy reforms aimed at achieving long-term fiscal sustainability.
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