The Ministry of Finance and over one-hundred (100) participants from over twenty (20) International Commercial Banks and Export Credit Agencies (ECA) with loan exposure to Zambia, Thursday, held a virtual meeting for an update on the country’s macroeconomic and fiscal situation, engagement with the IMF, and the authorities’ strategy to restore public debt sustainability.
Budget and Economic Affairs Permanent Secretary EMMANUEL PAMU was Zambia’s lead speaker during the virtual meeting with the International Commercial Banks and Export Credit Agencies.
In his remarks during the meeting, Dr PAMU explained that the ongoing Covid-19 crisis had created major challenges for the Zambian economy and that the country remained committed to restoring public debt sustainability and maintaining transparent engagement with all creditors.
“This meeting gives me an opportunity to reiterate our strong commitment to resolve this situation and devise, with your assistance and cooperation, a responsible and sustainable solution to our debt problems,” he said.
Dr PAMU and his team of officials from the Ministry of Finance and the Bank of Zambia used the occasion to respond to questions from the creditors pertaining to Zambia’s macroeconomic situation, engagement with the IMF, and the debt restructuring exercise.
The Permanent Secretary requested all participating banks and respective Export Credit Agencies to consider forming a Private Creditor Coordination Committee to enhance communication and transparency, going forward.
Zambia’s Eurobond holders have already constituted a similar arrangement. The Government is in the process of engaging bilateral creditors under the G20
Common Framework, with a view to also encourage them to form a similar coordination arrangement.
“I want to thank all the investors for participating in this highly productive virtual meeting, which we hope, further demonstrates the Zambian Government’s commitment to remain transparent and work closely with all our creditors as we make progress towards restoring Zambia’s public debt sustainability,” Dr PAMU said at the conclusion of the meeting.
He added that it is the Government’s sincere hope that the process will result in the formation of a Private Creditor Coordination Committee to facilitate greater communication and data dissemination going forward.