• Zambia needs a significant reduction in its debt burden from external creditors.
• This is to contemplate economic reforms and preserve the recent growth momentum.
• Discussions are ongoing and the IMF hopes a suitable agreement will be reached soon.

International Monetary Fund (IMF) has urged Zambia’s official creditors to move forward and reach an agreement on a debt treatment in line with the financing assurances that they provided in July, 2022.
Addressing Journalists at a media briefing, IMF Director of Communication Julie Kozack said Zambia needs a significant reduction in its debt burden from external creditors to contemplate economic reforms and preserve the recent growth momentum.
Ms. Kozack noted that the discussions are ongoing and the IMF hopes a suitable agreement will be reached soon.
“We urge official creditors to move forward and reach agreement on a debt treatment in line with the financing assurances that they provided in July, 2022. Zambia is making promising progress on delivering on its commitments under the IMF supported program.”
“This includes significantly reducing the fiscal deficit and increasing social spending in 2022, together with steps to strengthen public financial management and governance,” Ms. Kozack noted.
On 31st August, 2022, the IMF Board approved a US$1.3 billion 38month Extended Credit Facility (ECF) arrangement for Zambia to help advance the authorities’ homegrown economic reform plan.
The program supports the government’s reform plan to restore debt sustainability, create fiscal space for much-needed social spending, and achieve sustainable and inclusive economic growth.
The IMF team is currently conducting the first review under the ECF and an Article IV consultation from 22nd March to 5th April in Lusaka to remove any hurdles to the timely consideration by the IMF’s Executive board of the first review and the Article IV.
The IMF is collecting economic and financial information, and discussing the country’s economic developments and policies, while assessing performance in areas such as restoration of fiscal and debt sustainability; improving debt management and transparency; strengthening governance and financial sector stability; as well as strengthening financial management.