Zambia is seeking an additional $145 million by extending its current International Monetary Fund (IMF) loan programme by another 12 months, the country’s Finance Minister, Situmbeko Musokotwane, announced on Tuesday.
The move is part of broader efforts by the Southern African nation to stabilise its economy and restore fiscal credibility after years of accumulating unsustainable debt.
Zambia has already received $1.55 billion under the existing $1.7 billion Extended Credit Facility (ECF), which is scheduled to expire in October. Although the government had earlier signalled its intention to seek an extension, this is the first time it is publicly disclosing the specific amount of additional funding being pursued.
“The IMF programme gives the assurance that we are running things prudently,” Musokotwane told reporters at a press conference in Lusaka.
“The additional financial support we are looking at is about $145 million.”
The finance minister also warned that if the IMF programme is allowed to lapse in October, Zambia risks losing broader donor support, much of which is tied to the country’s ongoing engagement with the Fund.
Zambia, a major copper producer, became the first African country to default on its sovereign debt during the COVID-19 pandemic in 2020. It has since been working to restructure its debt and implement fiscal reforms under IMF guidance.
The country’s dollar bonds responded positively to the announcement, with the 2053 maturity rising by 0.3 cents to 73.09 cents on the dollar, according to data from Tradeweb.
The proposed extension is seen as a critical step in securing continued international support and reinforcing investor confidence as Zambia works to rebuild its financial standing.
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