After the fourth review.. Zambia receives a new tranche from the IMF worth $184 million

 International Monetary Fund experts and Zambian authorities reached an immediate agreement under which Zambia will receive $184 million, after the Fund approved the fourth review of the extended credit facility, according to what was published by Bloomberg.

This comes within the framework of A 38-month program supported by the International Monetary Fund following a staff-level agreement reached between the southern African country and the Fund last month.

Under the plan, the country received about $1.3 billion, including the final payment.

The Fund stated – in a statement – that the program’s performance remained largely satisfactory, indicating that the Zambian authorities remain committed to maintaining macroeconomic stability and restoring financial and debt sustainability, While supporting vulnerable families and promoting structural and administrative reforms to boost growth.

Zambia, which is in the final stages of emerging from a long debt renewal process after defaulting in 2020, is struggling from the effects of severe drought caused by About the El Niño phenomenon.

This has pushed inflation to its highest level in three years as the country imports food and electricity to ease the deficit.

The country relies on hydroelectric power to generate about 85% of its electricity. , making it vulnerable to reduced water supplies.

The Fund had lowered its forecast for economic growth for Zambia this year to 1.2%, and in November it reduced its forecast for 2025 to 6.2% from 6.6% due to production Constrained electricity.

The IMF said Zambia’s public debt was assessed as sustainable but remains at high risk of both overall and external debt distress, adding that the country is expected to reach a moderate level of debt distress risk. Foreign Affairs in the medium term.

For his part, Zambian Finance Minister Situmbeko Musokotwane said in a statement that his country is ready to tighten monetary policy further to reduce inflation and accelerate government and structural reforms. Noting that Zambia will continue the process of consolidating public financial conditions.

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