ZAMBIA WITHDRAWS REQUEST FOR IMF LOAN EXTENSION
IMF Confirms Zambia Pulled Request for $145 Million and Extended Monitoring, Shifting Focus to Domestic Resources
Zambia has withdrawn its formal request to extend its financial program with the International Monetary Fund (IMF), the Fund confirmed on Wednesday. No reason for the decision was provided by the authorities.
The country had sought a one-year extension of its Extended Credit Facility (ECF), a program established in 2022 to help stabilize its economy following a 2020 default on its external debt. The extension would have provided an additional disbursement of approximately $145 million and maintained the IMF’s oversight of its economic reforms.
With the withdrawal, Zambia will instead need to utilize domestic revenues, access to financial markets, and support from other international partners to address any remaining budgetary needs. The nation is currently experiencing double-digit inflation ahead of a general election scheduled for August.
The Zambian government has projected an improved economic outlook for 2026, forecasting that its budget deficit will fall by more than half and economic growth will exceed 6 percent.
The IMF stated that its sixth and final review of Zambia’s current ECF arrangement is still scheduled to be presented to its Executive Board before the end of this month, effectively concluding the existing program without extension.
Source:NKONKONSA.com
