By Lesley Wroughton
WASHINGTON, March 4 (Reuters) - Zambia could receive an additional $100 million to $150 million in balance of payments support from the International Monetary Fund, an IMF spokesman said on Wednesday, as the country struggles with the effects of falling copper prices and a global credit crisis.
The IMF said in a statement it was ready to substantially increase its financial support for the landlocked Southern African country 'to ease the adjustment to the external shock Zambia has experienced and support the Bank of Zambia's ability to maintain orderly foreign exchange market conditions.'
The additional support would be given under the country's current three-year $79.2 million IMF Poverty Reduction and Growth Facility arrangement approved in June 2008.
Francesco Caramazza, the IMF's mission chief for Zambia, said the IMF will try to complete the first and second reviews of the program in late April or early May. Approval of the reviews would see a loan tranche of around $20 million disbursed to the country.
Caramazza said the Zambian government had responded 'appropriately' to the difficult domestic and global environment.
The country's mainstay mining sector has been hammered by the sharp fall in copper prices since last year which prompted cutbacks in output and a reduction or suspension of mining projects.
Lower foreign exchange inflows from the mining sector have also led to the sharp depreciation of the kwacha currency .
'The Bank of Zambia has responded appropriately to exchange market pressures by providing, when necessary, foreign exchange to the market from the reserves it has built up in recent years,' Caramazza said.
He said Zambia's economic program in 2009 will focus on improving public financial management, advancing financial sector development, and policies to ensure reliable electricity supplies.
((Reporting by Lesley Wroughton; editing by Gary Crosse)) Keywords: IMF/ZAMBIA (lesley.wroughton@thomsonreuters.com; +1-202-898-8317; Reuters Messaging: lesley.wroughton.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
WASHINGTON, March 4 (Reuters) - Zambia could receive an additional $100 million to $150 million in balance of payments support from the International Monetary Fund, an IMF spokesman said on Wednesday, as the country struggles with the effects of falling copper prices and a global credit crisis.
The IMF said in a statement it was ready to substantially increase its financial support for the landlocked Southern African country 'to ease the adjustment to the external shock Zambia has experienced and support the Bank of Zambia's ability to maintain orderly foreign exchange market conditions.'
The additional support would be given under the country's current three-year $79.2 million IMF Poverty Reduction and Growth Facility arrangement approved in June 2008.
Francesco Caramazza, the IMF's mission chief for Zambia, said the IMF will try to complete the first and second reviews of the program in late April or early May. Approval of the reviews would see a loan tranche of around $20 million disbursed to the country.
Caramazza said the Zambian government had responded 'appropriately' to the difficult domestic and global environment.
The country's mainstay mining sector has been hammered by the sharp fall in copper prices since last year which prompted cutbacks in output and a reduction or suspension of mining projects.
Lower foreign exchange inflows from the mining sector have also led to the sharp depreciation of the kwacha currency .
'The Bank of Zambia has responded appropriately to exchange market pressures by providing, when necessary, foreign exchange to the market from the reserves it has built up in recent years,' Caramazza said.
He said Zambia's economic program in 2009 will focus on improving public financial management, advancing financial sector development, and policies to ensure reliable electricity supplies.
((Reporting by Lesley Wroughton; editing by Gary Crosse)) Keywords: IMF/ZAMBIA (lesley.wroughton@thomsonreuters.com; +1-202-898-8317; Reuters Messaging: lesley.wroughton.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.