• ECF arrangement should focus on restoring macroeconomic stability
• It should provide the foundation for an inclusive economic recovery.
• The Fund will provide interim finance for three-years.

Policy Monitoring and Research Centre (PMRC) has advised government to ensure successful implementation of the Extended Credit Facility (ECF) programme once approved by International Monitory Fund (IMF).
Centre Acting Executive Director Sydney Mwamba told Money FM News that government must adhere to the conditions of the agreement that are yet to be disclosed.
Mr. Mwamba stated that the Extended Credit Facility arrangement should focus on restoring macroeconomic stability and provide the foundation for an inclusive economic recovery.
“To achieve this objective, both the quantitative and structural benchmarks on set conditions will have to be implemented,” Mr. Mwamba said.
He further stated that the role of the IMF in debt restructuring is critical as its involvement in the economy will give credibility and impetus to an orderly debt restructuring process and provide key support to Zambia in delivering financial assistance to ease the debt burden.
“The Fund will provide “interim finance” (SDR 980 million or $1.4 billion for three-years) which will give Zambia the fiscal space to restructure its debt, also technical commitment based on programme conditionality, reviews and the phased disbursement of financing, to reassure creditors about the domestic policy adjustment to be implemented throughout the programme horizon.”
“Austerity measures are expected, careful spending and cost cutting measures such as removal of subsidies are going to be implemented.”
Mr. Mwamba added that without the IMF’s support, countries like Zambia would have to cut back on essential health, social and investment spending, and its ability to meet its external debt obligations would be impeded
“The Fund will provide interim finance (SDR 980 million or $1.4 billion for three-years) which will give Zambia the fiscal space to restructure its debt, also technical commitment based on programme conditionality, reviews and the phased disbursement of financing, to reassure creditors about the domestic policy adjustment to be implemented throughout the programme horizon.”
On 3rd December 2021, Government and the International Monetary Fund reached a staff level agreement on a Special Drawing Right (SDR) amounting to US$1.4 billion from 2022-2025 Extended Credit Facility (ECF).
The agreement is based on Zambia’s plans to undertake bold and ambitious economic reforms which include agreeing to implement a set of policies that will help make the country progress towards achieving a stable and sustainable macroeconomic position in the medium term.