IMF official announcements and press releases

Zambia Nears End of Default, IMF Agreement Reached for SDR 433.34 Million

Jun 4, 2024, 10:04 AM

More than three-and-a-half years after declaring itself bankrupt, Zambia is about to emerge from default. The country’s debt restructuring serves as a painful test case, providing hard lessons for richer nations on debt relief plans. The IMF has reached a staff-level agreement on the third review of the Extended Credit Facility with Zambia, which, once approved, will grant Zambia immediate access to SDR 433.34 million. Additionally, Zambian authorities have requested an augmentation of access by 30% of quota (SDR 293.46 million) to preserve macroeconomic stability. A board meeting is expected by the end of the month. Zambia has also requested about $400 million in additional financing from the IMF to address its worst drought in at least four decades.