IMF approves $320.4 mln loan to Zambia

WASHINGTON, June 16 (UPI) -- The International Monetary Fund Wednesday approved a $320.4 million loan to Zambia to support the government's economic program.

The first part of the loan totaling $120.2 million will be available immediately, the IMF said.

"Zambia's performance continues to improve, with the economy now enjoying the strongest period of growth in the last two decades and the lowest rate of inflation in two decades. Nevertheless, the country's economy remains fragile and significant progress toward the Millennium Development Goals will require even faster economic growth and better targeted public spending. In this regard, prudent macroeconomic management and a deepening of structural reforms will be critical," said Takatoshi Kato, deputy managing director and acting chairman.

The money from the IMF will be used largely to stop the cycle of rising domestic debt and interest payments, and to increase spending on poverty-reducing programs.