LUSAKA, Feb 12 – Zambia has formally requested a new programme from the International Monetary Fund, with discussions expected to begin later this month, a senior government official said.
A team from the IMF is scheduled to visit the Southern African country from February 25 to March 4, according to Secretary to the Treasury Felix Nkulukusa, and if the talks proceed as planned, Zambia expects to reach a staff level agreement with the Fund in May.
Nkulukusa said that after a staff level agreement is secured, the programme will require approval from the IMF’s executive board before implementation can begin. The timing of board approval will determine when the new arrangement takes effect.
Zambia’s previous IMF programme concluded in January and under that arrangement, the Fund disbursed a total of 1.7 billion dollars to support the country’s economic reform agenda and stabilisation efforts. The financing forms part of a broader plan to help Zambia navigate a prolonged debt restructuring process following its sovereign default in 2020.
The government has sought to restore macroeconomic stability and rebuild investor confidence as it restructures external debt with official and private creditors. The IMF programme provided policy guidance and financial support during that process.
The request for a new programme comes ahead of Zambia’s national elections scheduled for August.
Authorities have not disclosed the size or specific terms of the proposed programme. Further details are likely to emerge following the IMF mission and subsequent negotiations.
