The International Monetary Fund (IMF) has welcomed the debt treatment agreement reached by Zambia and its official creditors under the G20 Common Framework.
Managing Director of the IMF, Ms. Kristalina Georgieva has welcomed the announcement of an agreement being reached by Zambia and its official creditors under the Group of 20 Common Framework to restructure $6 billion debt of the country.
“I warmly welcome Minister of Finance Situmbeko Musokotwane’s announcement that the Zambian authorities have reached an agreement with their official creditors on a debt treatment, consistent with the objectives of the IMF-supported program. This unique and innovative agreement specifies both a baseline and a contingent treatment that would be automatically triggered if the assessment of Zambia’s economic performance and policies improves,” said Ms. Kristalina Georgieva.
“I want to thank the official creditor committee, especially co-chairs China and France and Vice-Chair South Africa, for all their work to reach this agreement. This is a significant milestone for the G20 Common Framework under which China, India, Saudi Arabia and Paris Club creditors joined forces to agree deep debt relief for Zambia,” she said.
“This agreement paves the way for the completion of the first review of Zambia’s three-year Extended Credit Facility Arrangement, which is helping put Zambia on a path toward sustainable economic growth and poverty reduction.”
“I look forward to the Executive Board taking up this review in the coming weeks and the continuation of our productive collaboration with Zambia in the period ahead,” said Ms. Kristalina Georgieva.
As at end-June 2021, Zambia’s total public debt was USD equiv. 26.44bn excluding interest arrears, and USD equiv. 26.96bn including interest arrears. Offical
Reports show that currently many African countries are highly indebted including Burkina Faso, Democratic Republic of Congo, Nigeria, Ghana, Ethiopia, Botswana, among others.