The International Monetary Fund (IMF) has called for all parties involved in Zambia’s debt restructuring process to reach a compromise as delays continue to hinder progress. Abebe Selassie, the IMF Director for the African Department, expressed frustration over the prolonged negotiations but remains hopeful for a resolution with the Official Creditors Committee.
During a press briefing held at the IMF Headquarters, Mr. Selassie underscored the urgency of concluding the debt restructuring for Zambia. He urged all stakeholders to come together and find a common ground that serves the best interests of the country and its economic recovery.
“The delay in the conclusion of the debt restructuring for Zambia is frustrating,” said Mr. Selassie. “However, we remain optimistic that a decision will be reached with the Official Creditors Committee.”
Highlighting the need for a more systematic approach to debt treatment, Mr. Selassie called for a global sovereign roundtable discussion. He emphasized that a set of guidelines on debt restructuring would provide a standardized framework for countries facing similar challenges.
“There is a need for a global sovereign roundtable discussion that should come up with guidelines on debt treatment,” Mr. Selassie stated. “Currently, there is no particular standard of how countries seeking debt restructuring can be treated, as each country is treated on a case-to-case basis.”
The lack of a standardized approach can lead to inefficiencies and inconsistencies in the debt restructuring process. A global framework, as proposed by Mr. Selassie, could offer a more transparent and equitable solution for countries grappling with debt-related issues.