Source(s) of financing ADF: 14000000 Cofinanced: 256000000
Implementing Agency: BANK OF ZAMBIA - ECONOMICS DEPARTMENT (INFORMATION STATISTICS)
Location: COUNTRY WIDE
The objective of the proposed loan is to support the efforts of the GRZ in implementing macro-economic reform measures, with particular emphasis on the following areas: (i) contractionary fiscal and monetary policies with a view to reducing inflation; (ii) implementing a privatization programme; (iii) implementing a parastatal and civil service reform.
The proposed ADF Economic Recovery Loan II is part of a larger programme supported by the international donor community which is designed to provide balance of payments support for the financing of the import requirements of Zambia. The financing of imports will be based on a short negative list imports.
The proposed loan will enable Zambia to continue with its adjustment process, particularly within the main areas referred to in (13) above. The policy and institutional reforms are anticipated to enable Zambia achieve sustainable growth over the medium-term.
The Bank Group intervention, along side the international donor community, is crucial for consolidating the policy and institutional reforms already implemented and for ensuring the momentum and sustainabilty of the adjustment process.