Official creditor committee provides Zambia official financing assurances

Official creditor committee provides Zambia official financing assurances.

 IMF Managing Director Welcomes the Statement by the Creditor Committee for Zambia under the Common Framework for Debt Treatments

July 30, 2022

Following the statement issued on July 30 by the Creditor Committee for Zambia under the Common Framework for Debt Treatments beyond the DSSI, Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), issued the following statement:

“I am very pleased to welcome the statement issued on July 30 by the Official Creditor Committee for Zambia. The support from the Official Creditor Committee for Zambia’s envisaged IMF-supported program, together with its commitment to negotiate debt restructuring terms, accordingly, provides the IMF with official financing assurances. I strongly endorse the call by the Official Creditor Committee for private creditors and other official bilateral creditors to commit to comparable debt treatments.

“The delivery of these financing assurances will enable the IMF Executive Board to consider approval of a Fund-supported program for Zambia and unlock much needed financing from Zambia’s development partners. [1]

“I would like to thank the members of the Creditor Committee for their work on Zambia’s request for a debt treatment. It shows that progress is being made in implementing the G20’s Common Framework and recognizes the strong reform efforts of the Zambian authorities to restore macroeconomic stability and foster higher, more resilient, and inclusive growth. This support for the G20 Common Framework demonstrates that international partners are coming together to help countries resolve their debt issues, sending a strong signal to other countries looking to restore debt sustainability, achieve sustainable growth and poverty reduction.”

[1] On December 3, 2021, IMF staff reached staff level agreement with the Zambian authorities on a new arrangement under the Extended Credit Facility (ECF) for 2022-2025 in the amount of about SDR 980 million or about $1.3 billion.