Zambia receives IMF rescue of $1.3 billion.

 Zambia, which is heavily indebted, will receive a $1.3 billion loan from the International Monetary Fund to help it regain fiscal stability. The IMF also urged Zambia to fight corruption. Zambia became the first nation on the continent to default on its $17.3 billion in foreign debt in 2020, when the Covid-19 pandemic devastated Africa. Zambia, a country rich in copper, and IMF staff reached a tentative agreement last December to offer $1.3 billion in assistance funds, but only if Zambia took real action to lower its debt burden to levels considered sustainable. The facility would support Lusaka's domestic reform strategy to "establish debt sustainability, create fiscal headroom for much-needed social investment, and strengthen economic governance," according to an IMF statement issued late Wednesday.

The Fund claimed that years of economic mismanagement must be addressed by the current Hakainde Hichilemna government, which took office a year ago. IMF managing director Kristalina Georgieva stated that "a significant strengthening of fiscal controls is needed to support the fiscal adjustment, as well as address governance and corruption risks." Zambia's economic development "has been too low to alleviate poverty, inequality, and hunger rates, which are among the highest in the world," according to an IMF statement. "To put the country's public debt on a sustainable course, Zambia needs a deep and comprehensive debt treatment." Hichilema's administration has improved ties with donors since the election last year. Hichilema wrote on Facebook that the IMF's announcement "is a vote of confidence in your leadership and in the people of Zambia." The accomplishments we have made and our dedication to restoring our economy and becoming a responsible member of the family of countries have been recognized by the world community, he claimed.

AFP

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