The International Monetary Fund (IMF) has approved a three-month extension of Zambia’s $1.3 billion Extended Credit Facility (ECF), granting the government more time to finalize its ongoing debt restructuring negotiations, Bloomberg reported on Friday.
The IMF’s board decision extends the program, originally set to expire in September 2025, to December 2025. Finance Ministry officials told Financial Times that the extension provides “critical breathing space” as Lusaka continues talks with private creditors and bilateral partners to close outstanding gaps in its debt treatment plan.
Zambia became the first African country to default during the COVID-19 pandemic in 2020 and has since struggled to reach comprehensive agreements with creditors despite partial progress under the G20 Common Framework. Analysts cited by Business Day noted that the IMF extension signals institutional support for Zambia’s reform agenda, while also underscoring the challenges of navigating creditor coordination.
The ECF program, worth $1.3 billion, has already disbursed several tranches tied to fiscal and structural reforms. With the extension, Zambia hopes to unlock its next disbursement before year-end, contingent on satisfactory progress with debt talks.
