LUSAKA (Reuters) – The International Monetary Fund’s executive board has approved a three-month extension of Zambia’s loan programme, the fund said on Monday, and a request for a longer extension will be discussed later.
The IMF said in a statement that the three-month extension to January 30, 2026, would allow sufficient time to complete a sixth review of Zambia’s Extended Credit Facility and “lay the groundwork for future programme engagement”.
Felix Nkulukusa, secretary to Zambia’s Treasury, said a request for a one-year extension would be discussed at the time of the sixth review.
The fund’s board approved the copper-producing country’s 38-month programme in August 2022, supporting its efforts to get its public finances back on track.
Zambia defaulted on its external debt in 2020 after years of unsustainable borrowing but battled its way to a restructuring deal with its primary creditors last year. It is still seeking to agree restructuring terms with some smaller creditors.
So far Zambia has received about $1.55 billion under the $1.7 billion Extended Credit Facility.
(Reporting by Shubham Kalia and Bipasha Dey in Bengaluru and Chris Mfula in Lusaka; Writing by Alexander Winning; Editing by Alex Richardson)
