Reuters
Jun 16, 2022
JOHANNESBURG — The International Monetary Fund (IMF) urged Zambia’s creditors on Thursday to give assurances on their treatment of the southern African country’s debt in order to unlock an IMF support program and boost economic recovery.
Zambia is due to hold its first meeting with official creditors on Thursday, as it seeks relief on its more than $17 billion of external debt.
Its debt restructuring is being done under a new common framework supported by the Group of 20 major economies and is being closely watched, as it will likely set precedents for other, similarly distressed countries.
At the center of the support program for Zambia is a $1.4 billion three-year extended credit facility that was agreed at IMF staff level in December.
IMF Deputy Managing Director Antoinette Sayeh visited Zambia on Wednesday to discuss the country’s program, which Zambian officials hope to start in September.
During a joint news conference with Sayeh on Wednesday, Finance Minister Situmbeko Musokotwane said major creditors were willing to discuss debt restructuring as part of efforts to end a debt crisis that spurred Africa’s first pandemic-era default.
Sayeh said on Thursday: “We are encouraged by the news that the official creditor committee will meet today to begin deliberations on Zambia’s request for a debt treatment under the G20 Common Framework.”
“We urge creditors to provide financing assurances as soon as possible, as they are needed before staff can put forward Zambia’s program for consideration by the IMF Executive Board.”
Zambia defaulted in November 2020 after an economic downturn triggered by pandemic lockdowns and travel restrictions.
Zambia’s foreign debt is owed to bondholders, sovereign bilateral lenders and multilateral institutions. (Reporting by Tim Cocks; Editing by Bradley Perrett)
Leave a Reply