April 8, 2005
1. On behalf of the Zambian authorities, we thank staff and Fund management for the constructive engagement in Zambia and for the positive assessment that Zambia has satisfactorily met the requirements for reaching the completion point under the Enhanced Initiative for Heavily Indebted Poor Countries (HIPC). The successful implementation of the economic program supported by the PRFG arrangement, along with the implementation of the PRSP and the significant progress made in meeting the completion point triggers, have been the basis for Zambia’s attainment of these achievements. The authorities have implemented almost all the triggers, with only three out of fifteen which have not been fully implemented; however, substantial progress has been made towards reaching them. The authorities view the staff report as fair and balanced and would like to reiterate their commitment to the objectives of the economic program and the strategy for reaching them as outlined in the Memorandum of Economic and Financial Policies (MEFP) attached to their Letter of Intent.