The Ministry of Finance has announced that Zambia and the International Monetary Fund (IMF) will resume virtual discussions on outstanding issues, on Tuesday 30 March 2021 and continue into the first two weeks of April 2021.
Zambia requested an Extended Credit Facility (ECF) from the IMF, in November 2020.
Secretary to the Treasury Fredson Yamba in a statement made available to Smart Eagles says a team from the Ministry of Finance, Bank of Zambia as well as other relevant ministries and institutions will participate in the discussions with the IMF.
Mr. Yamba says the aim is to agree on an appropriate policy reform agenda to address the economic challenges that Zambia is encountering and support the country’s return to a sustainable macro-fiscal situation over the medium-term.
“A previous virtual mission took place between 11 February and 3 March 2021. During that mission, significant progress was made, with both parties agreeing on the causes of Zambia’s macro-economic imbalances and the current state of its public finances,” he said.
“Zambia requested for a formal IMF programme under the Extended Credit Facility window in November 2020 in order to stabilize the economy, severely hit by the COVID-19 pandemic.”
He recalled that in December 2020, Zambia launched its Economic Recovery Programme 2020 – 2023.
Mr. Yamba stated that the Ministry of Finance, with the assistance of its financial and legal advisors, continues to engage with all creditors.
“As of late January 2021, Zambia has requested a debt treatment under the Common Framework agreed by the G20 and Paris Club members, which is expected to contribute to restoring Zambia’s public debt sustainability,” he added.