by Nurat Uthman
The International Monetary Fund (IMF) said on Tuesday that Zambia’s government had asked for its $1.3 billion loan programme to be increased to $1.7 billion to help it respond to a severe drought.
The IMF also said in a statement that it had reached a staff-level agreement on the third review of the southern African country’s Extended Credit Facility.
Once the latest review is approved by IMF’s executive board at a meeting expected by the end of June, Zambia will have access to roughly $573 million, the fourth disbursement under the facility.
Zambia is one of a handful of African countries grappling with a drought induced by the El Niño weather phenomenon that has plunged parts of the region into hunger.
The copper-rich country is close to emerging from a debt restructuring process beset by delays after more than three and a half years.
Zambia’s finance ministry said last week that more than 90% of holders of its $3 billion in outstanding international bonds had accepted a restructuring proposal.
Finance Minister Situmbeko Musokotwane said the staff-level agreement announced on Tuesday was “testament to Zambia’s determination to rebuild macroeconomic and debt sustainability” and its efforts to finalise restructuring talks within the parameters of its IMF programme.
