IMF Staff Country Reports

This paper highlights Zambia’s Second Review under the Arrangement under the Extended Credit Facility, Requests for a Waiver of Nonobservance of a Quantitative Performance Criterion, Modifications of the Monetary Policy Consultation Clause and of Quantitative Performance Criteria, and Financing Assurances Review. Program performance has been satisfactory despite a challenging domestic and global environment. All but one quantitative performance criteria for the second review were met, and most structural conditionality completed. The authorities continue to advance on policies and reforms to restore fiscal and debt sustainability, raising and safeguarding social spending, preserving financial stability, and intensifying structural and governance reforms to unlock Zambia’s growth potential. The program performance has been satisfactory despite a challenging domestic and global environment. The authorities requested a waiver of nonobservance for missing the end-June 2023 net international reserve target as they have put in place corrective measures. Four out of seven structural benchmarks were met, with two others completed with minor delays.