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WASHINGTON, Jan 9 (NNN-AGENCIES) — Zambia has ditched plans to extend its International Monetary Fund loan programme before the scheduled expiration at the end of this month, the fund said on Wednesday.
“While the authorities initially requested a one-year extension of the Extended Credit Facility (ECF) arrangement, they have since informed the IMF team that they will not pursue this option,” an IMF spokesperson said.
The programme was agreed in 2022 to help Zambia restore debt sustainability after its 2020 default.
The sixth and final review under the arrangement is expected to be considered by the fund’s executive board at the end of January.
Zambia had hoped to secure about $145 million in additional funding through the extension.
No reason was given for the decision, which comes as President Hakainde Hichilema’s government prepares for elections in August while facing double-digit inflation.
The government forecast an improved fiscal picture for 2026, estimating that the budget deficit would shrink by more than half and that economic growth would rise above 6%, following years of protracted debt restructuring negotiations and a severe drought. — NNN-AGENCIES