Zambia’s 38-month arrangement under the Extended Credit Facility (ECF) is based on the country’s “homegrown economic reform plan that aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth,” according to the official statement by the IMF made on September 1, 2022.
The IMF stated that the programme will also “catalyse much-needed financial support from development partners,” enabling an immediate disbursement equivalent to about $185m. Indeed, for Zambia, the IMF programme provided endorsement to restructure over $17bn of external debt from other creditors.
Zambia became the continent’s first pandemic-era sovereign defaulter in 2020 and has another Eurobond of $750m due to mature this month. According to finance minister Situmbeko Musokotwane, it won’t be possible for Zambia to meet its obligation to Eurobond holders.
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