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HomeEconomyIMF board approves $1.4 billion Zambia plan: sources

IMF board approves $1.4 billion Zambia plan: sources

Jorgelina do Rosario and David Lawder

(Reuters) – The Executive Board of the International Monetary Fund on Wednesday approved a $1.4 billion extended credit facility for Zambia Sources with direct knowledge

Zambia’s creditors, led by China and France, pledged in late July to negotiate the country’s debt restructuring, IMF Managing Director Kristalina Georgieva ( Kristalina Georgieva welcomed the move as “clearing the way” for $1.4. billion fund plan.

In 2020, Zambia became the first African country to default in the pandemic era. Its external debt restructuring (over $1 billion as of 2021 year-end) is seen by many analysts as a test case for the region.

It is one of three southern African countries, along with Chad and Ethiopia, seeking restructuring under G20) Common Debt Restructuring frame.

Zambia in December reached a staff-level agreement with the International Monetary Fund for a $1.4 billion three-year extended credit facility conditional on its ability to reduce its debt to A level deemed sustainable by the International Monetary Fund.

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