This article seeks to post for downloading to the public of the IMF Zambia’s extended credit facility (ECF) which had seen months of delays and corrections in making.
The Ministry of Finance released to the public the IMF report containing the conditions attached to the $1.3bn Extended Credit Facility(EFC)arrangement approved by the IMF board on 1st September, 2022.
The facility seeks to restore macroeconomic stability and foster higher, more resilient and inclusive growth. An initial $185m is to be disbursed immediately after the approval of the ECF.
It’s worthy noting that this facility is based on a home grown economic program or plan aimed at restoring debt sustainability and fiscal space which the UPND Government has already started implementing.
Here is a prose summary of some of the conditions attached to the deal:-
- Expansion of the social cash transfer program. This is to cushion the impact of the economic measures on the vulnerable people.
- Increased public spending on education and health.
- Elimination of regressive fuel subsidies. These have already been drastically reduced.
- Enhanced agriculture or FISP program subsidy.
- Fiscal adjustment. Prudent management of public resources.
- Reducing inefficiency in public investments by monitoring fiscal risks especially those related to SOE.
- Aggressive fight against corruption.
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