JOHANNESBURG, Jan 7 (Reuters) – Zambia has ditched plans to extend its International Monetary Fund loan programme before the scheduled expiration at the end of this month, the fund said on Wednesday.<\/p>\n
“While the authorities initially requested a one-year extension of the Extended Credit Facility (ECF) arrangement, they have since informed the IMF team that they will not pursue this option,” an IMF spokesperson said.<\/p>\n
Sign up here.<\/a><\/p>\n The programme was agreed in 2022 to help Zambia restore debt sustainability after its 2020 default.<\/p>\n The sixth and final review under the arrangement is expected to be considered by the fund’s executive board at the end of January.<\/p>\n Zambia had hoped to secure about $145 million in additional funding through the extension.<\/p>\n No reason was given for the decision, which comes as President Hakainde Hichilema’s government prepares for elections in August while facing double-digit inflation.<\/p>\n The government forecast an improved fiscal picture for 2026, estimating that the budget deficit would shrink by more than half and that economic growth would rise above 6%, following years of protracted debt restructuring negotiations and a severe drought.<\/p>\n Reporting by Rodrigo Campos, Chris Mfula and Sfundo Parakozov; Editing by Edmund Klamann<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n