Zambia's government wants to extend its International Monetary Fund (IMF) programme another 12 months beyond its current expiry at the end of October, a cabinet statement said on Wednesday.

The copper-rich Southern African nation has been trying to get its public finances back on track with IMF support after running up a huge debt pile.

Its 38-month Extended Credit Facility was approved in August 2022 for an initial $1.3 billion but was later increased to $1.7 billion. So far about $1.55 billion has been disbursed.

The cabinet statement said Finance Minister Situmbeko Musokotwane had been authorised to ask the IMF for the 12-month extension.

Loan defaulting

"The objective is to consolidate the gains achieved during the programme period into 2026" and help support economic reforms, the statement said.

A finance ministry spokesperson declined to elaborate when contacted by Reuters.

Zambia defaulted on its external debt in 2020 after years of unsustainable borrowing but battled its way to a restructuring deal with its primary creditors last year. It is still seeking to agree restructuring terms with smaller creditors including Afreximbank.

Last week, the IMF's board approved a $184-million disbursement to Zambia after completing the fifth programme review.