LUSAKA, Jan. 8 (Xinhua) -- Zambia has abandoned its earlier plan to seek a one-year extension of an extended credit facility (ECF) program supported by the International Monetary Fund (IMF), and has instead opted to pursue a new full program, a senior government official said on Thursday.
Minister of Finance and National Planning Situmbeko Musokotwane said that after careful consideration and extensive consultations, the government decided to conclude the ongoing sixth and final review of the current ECF arrangement and engage the IMF on a successor program.
"In this context, the government has decided not to pursue a one-year extension of the current ECF program as earlier envisaged. Instead, we now intend to replace it with a full program that runs its full course," he told a press briefing in Lusaka, the capital.
However, the minister said the decision should not be misunderstood as disengagement from the IMF or a weakening of reform commitment, but rather, it should be viewed as a reflection of the completion of the current program and a transition to a successor arrangement.
The successor program will continue to address the conclusion of Zambia's debt restructuring commitments, while also taking into account evolving economic priorities, particularly growth ambitions and other medium-term development needs, Musokotwane said.
He said that Zambia has, since 2022, successfully completed all reviews under the IMF-supported program, adding that a staff-level agreement on the sixth and final review was reached last month.
According to the minister, Zambia has consistently met key quantitative performance criteria and structural benchmarks since the start of the current program.
Zambia entered into the current IMF ECF program in 2022, which was initially expected to conclude in November 2025 but will now end by the close of January 2026.
The brief extension was purely technical, intended to allow sufficient time for the assessment of the program's performance as of the end of October 2025, Musokotwane said. ■
