Zambia renounces extending its financing program with the International Monetary Fund. The IMF announced that the Zambian government had abandoned plans to extend the loan, which expires at the end of the month.
The authorities had initially requested a one-year extension of the extended credit mechanism. But they ultimately informed the IMF that they would not pursue this option, without specifying the reasons.
Concluded in 2022, this program aimed to help Zambia restore debt sustainability, following the country's default in 2020. The sixth and final review of the agreement must still be considered by the IMF board at the end of January.
An extension would have given Lusaka about $145 million more. This decision comes as President Hakainde Hichilema prepares for elections scheduled for August, in a still tense economic context, marked by double-digit inflation.
The government, however, wants to be optimistic. It forecasts an improvement in public finances from 2026, with a sharp reduction in the budget deficit and economic growth expected beyond 6%, after several years of debt restructuring and a severe drought.
