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IMF raises loan disbursement to Zambia to USD1.7B amid severe drought
(MENAFN) The International Monetary Fund (IMF) has announced an increase in loan disbursement to Zambia, raising the amount to USD1.7 billion with an immediate release of USD569.6 million. This financial aid aims to bolster Zambia's foreign reserves as the country grapples with a severe drought that has significantly affected its agriculture and electricity generation sectors.
The ongoing drought has prompted the IMF to revise Zambia's growth projections for 2024, lowering them from 4.7 percent to 2.3 percent. This adjustment underscores the profound impact of the drought on the nation's economy. The decision to increase the loan disbursement followed a meeting of the IMF executive board on Wednesday.
In August 2022, Zambia entered into a 38-month Extended Credit Facility arrangement with the IMF, under which this loan is being provided. The arrangement was designed to support Zambia's economic reform program and enhance its financial stability.
IMF Deputy Managing Director Antoinette Sayeh commended the Zambian authorities for their efforts in addressing the humanitarian needs resulting from the drought. "The drought has affected a substantial share of the population, and the authorities should continue their commendable efforts to address the humanitarian needs," she stated. This financial support from the IMF is expected to play a crucial role in mitigating the adverse effects of the drought and stabilizing Zambia's economy.
The ongoing drought has prompted the IMF to revise Zambia's growth projections for 2024, lowering them from 4.7 percent to 2.3 percent. This adjustment underscores the profound impact of the drought on the nation's economy. The decision to increase the loan disbursement followed a meeting of the IMF executive board on Wednesday.
In August 2022, Zambia entered into a 38-month Extended Credit Facility arrangement with the IMF, under which this loan is being provided. The arrangement was designed to support Zambia's economic reform program and enhance its financial stability.
IMF Deputy Managing Director Antoinette Sayeh commended the Zambian authorities for their efforts in addressing the humanitarian needs resulting from the drought. "The drought has affected a substantial share of the population, and the authorities should continue their commendable efforts to address the humanitarian needs," she stated. This financial support from the IMF is expected to play a crucial role in mitigating the adverse effects of the drought and stabilizing Zambia's economy.
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