March 5 (Reuters) - The International Monetary Fund said on Thursday that technical discussions with Zambian authorities over a new support programme could start in April but that agreement on a new deal was only expected after August's elections.
Zambia's most recent IMF programme ended in January, with total disbursements of $1.7 billion supporting the Southern African country as it emerges from a protracted debt-restructuring process.
"Zambia has made substantial progress in restoring macroeconomic stability under the recently completed IMF-supported programme," the IMF said in a statement at the end of a staff mission.
"The authorities expressed interest in a successor arrangement with the IMF. Initial technical discussions could begin as early as late April, with more engagement expected after the general elections once a new government is in place."
Zambia's President Hakainde Hichilema will seek re-election for a second term in August.
The IMF said the economic outlook for Zambia remained positive, though it said it had revised down its growth projections for 2025 and 2026 to 4.5% and 5.5%, respectively.
"The mission also discussed emerging fiscal pressures. While the 2026 budget framework targets a strong primary surplus, early signs of slippage have begun to emerge, reflecting spending pressures related to the wage bill, government support to the agricultural sector, and election-related expenditures," the Fund's statement continued.
(Reporting by Sfundo Parakozov;Editing by Alexander Winning)
