IFM Cancels Zambia’s Debt

The International Monetary Fund (IMF) executive board recently approved 100 percent debt relief for Zambia under the Debt Relief Initiative (DRI) on all amounts obtained before January 2005. IMF Resident Representative in Zambia Joseph Kakoza announced.

This debt relief will be available to Zambia in 2006. Zambia qualified to the IMF debt relief because of the overall satisfactory macro-economic performance and the progress she has made in poverty reduction.

“Zambia has enjoyed sustained robust growth, a striking turn-round in economic performance … especially in public finances.” Following the reaching of the Highly Indebted Poor Country (HIPC) completion point in March last year (2005) Zambia’s debt stock of US$7.1 billion to multilateral institutions will now dropped to US $ 502 million.

So the annual debt servicing that amounts to US $ 540 million may now be ploughed into the country’s economy. With the new focus on tourism and safaris some of this cash will find its way into development of Zambia-safaris.