THE International Monetary Fund (IMF) has agreed to give Zambia $81.2 million under the Poverty Reduction and Growth Facility (PRGF).

According to a statement released by the IMF, Zambia's benefit follows the completion of the third review of the country's performance under the PRGF.

The completion of the review would allow for the immediate disbursement of an amount equivalent to $81.2 million Special Drawing Rights (SDR) to bring the total disbursements to SDR $262.5 million.

The IMF commended Zambia for her solid performance under the PRGF-supported programme and the prudent macro-economic management demonstrated by the country's resilience to the global economic crisis.

"The 2010 Budget is well balanced. The authorities aim to create fiscal space for poverty reduction expenditure and for infrastructure investment to sustain robust and diversified growth.

"Zambia's risk of debt distress is low and there is some scope for external borrowing on non-concessional terms to finance the Government's share in essential infrastructure projects, particularly in electricity generation," the IMF said.

The Zambian authorities plan to adopt a comprehensive debt management strategy, which will ensure that external borrowing is consistent with continued low risk of debt distress.

The authorities are committed to improving aid management and to coordinate closely with the donors.