IMF board approves $1.4 billion programme for Zambia -source By Reuters

By Jorgelina do Rosario and David Lawder

(Reuters) -The chief board of the Worldwide Financial Fund on Wednesday authorized a $1.4 billion prolonged credit score facility programme for Zambia, a supply with direct data instructed Reuters.

Zambia’s collectors led by China and France pledged in late July to barter a restructuring of the nation’s money owed, a transfer that IMF Managing Director Kristalina Georgieva welcomed as “clearing the way in which” for a $1.4 billion Fund program.

In 2020, Zambia turned the primary African nation within the pandemic period to default. The restructuring of its exterior debt, which amounted to greater than $17 billion on the finish of 2021, is seen by many analysts as a take a look at case for the area.

It’s one in every of three southern African international locations, together with Chad and Ethiopia, which have sought restructuring beneath a G20 widespread debt restructuring framework.

Zambia reached a staff-level settlement with the IMF on a $1.4 billion three-year prolonged credit score facility in December, conditional upon its skill to cut back debt to ranges the Fund deems sustainable.