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Zambia debt relief pledge clears way for $1.4 billion program, says IMF

Headlines Zambia debt relief pledge clears way for $1.4 billion program, says IMF

Zambia’s creditors pledged to negotiate a restructuring of the country’s debts on Saturday, a move IMF managing director Kristalina Georgieva welcomed as “clearing the way” for a $1.4 billion Fund program.

The creditor committee, co-chaired by China and France, said in a statement released by G20 chair Indonesia that it supported Zambia’s “envisaged IMF upper credit tranche program and its swift adoption by the IMF Executive Board”.

Zambia’s creditor committee said that the restructuring terms would be finalised in a memorandum of understanding, without providing further details.

It also called on private creditors to “commit without delay” to negotiating debt relief on terms at least as favourable.

“Very pleased the Official Creditor Committee for Zambia has provided its financial assurances clearing the way for a Fund program,” IMF managing director Kristalina Georgieva said in a tweet.

“This shows the potential of the G20CommonFramework for debt treatment to deliver for countries committed to dealing with their debt problems,” Georgieva said in the tweet.

“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,” Georgieva said in a statement released by the IMF after her tweet.

Zambia reached a staff-level agreement with the IMF on a $1.4 billion three year extended credit facility in December, conditional upon its ability to reduce debt to levels the Fund deems sustainable.

Zambia’s government welcomed the creditors’ pledge and its unlocking of IMF support.

“Zambia remains committed to implementing the much needed economic reforms, being transparent about our debt and ensuring fair and equitable treatment of our creditors,” finance minister Situmbeko Musokotwane said.

The first creditor meeting was held in June, after Zambia’s government complained of delays to the restructuring.

Talks are taking place under the Common Framework, a debt relief process launched by the Group of 20 major economies in 2020 that has been criticised by some for being slow to yield results.

Below is the full statement

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.

“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.”

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.

18 COMMENTS

  1. The creditors don’t trust that uncircumcised DEEK-HEAD in state house. They know he will use the money to give his friends $ million dollars deals like the $ 50m fertilizer scandal. This chap in plot 1 thought this would be a walk over deal, having boasted that he is the master of the Art-Of-The-Deal. Then they reduced him to nobody and went he round begging EU Diplomats to help out. By the time he vacates Plot 1 Zambia will add $15B to the current debt.

    10
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    • You think that everyone comes from a thieving culture. HH does not have a thieving gene in him. HH is trying to solves the looting you did to the country. HH inherited a $30 billion debt trap created by Michael Sata(a) and Johnathan “Edgar Chagwa Lungu” Mutawire in 10 years. All of you people should be arrested, muzzled and jailed permanently for what you did to our country. You have no right to talk. Yes, we Tonga do not cut anything that we are naturally born with. We are proud of being 100% natural.

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  2. Its intresting to see that the chinese were part of the recommenders … i think we should learn something from china how they managed to break out of the imf trap and create a state that is self sufficient..see how how the west is foolishly labeling china as a stragetic threat??

  3. If you think the western world want to see you do well then you are naive. Those people only do things to benefit their own people. The problem we have as Africa is thar we have leaders who were educated and indoctrinated by the same westerners so they are taught how to think in a way that ensures the west achieve their agenda at our expense. I would rather be uneducated than hold a degree from the imperialists

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    • You Kaizar Zulu are one of the thieves who looted Zambia, and left it in a US $30 billion debt trap. You are among the people who sold our country to the Lebanese, Indians and the Chinese. So shut the hell up. I wish that you would have courage to return to Zambia to face prosecution for damage you have done to our country. You useless kaponya

  4. Nice………..

    We even hope the ground work for zambias resurgence will continue and the IMF money comes in nearer 2026 elections to make cushion the hard work ……..

    Either way , when that money comes in……..

    That will be the end of all these clown opposition leaders…………..

    That will be the final nail on their coffins………..

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    • The country owes US $30 billion all racked up by the evil tribalists Michael Sata(n) and Johnathan “Edgar Chagwa Lungu” Mutawire. HH has to dance to the tune of the IMF.

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    • A more reason why you cannot place China at the back of the line. The very ( China ) that has loaned $Trillion to the USA, $ Billions to the UK, Germany etc… Now is the time to *polish* up International & Diplomatic Relations skillsets.

      After denouncing and going anti-China during the 2011 elections campaigns, Michael Sata had to backtrack and cosy up with China. HH made a mistake shying away from China. I am sure today – HH has a different view on Global-Geo-Politics. It’s called *Job-on-Training.

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  5. Even without the IMF money ……….

    On current trajectory, HH was headed for an over whelming 2 term…………even before his economic fundamentals take hold with in the rule of law

    With the IMF money , expect Zambians to be clamoring for HH to serve beyond his 2 terms…………

    The clown opposition know this…………

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    • Spaka …..

      You seat in front of the keyboard 24/7 claiming UK Government Benefits….. You call yourself an engineer, scared to come to Zambia because you have nothing to show for yourself. You expect Zambia to develop by counting on other citizens, while you constantly vomit your nonsensical and delusional comments sickening everyone and everyday ….. You are sick man. Sort your life you F*ckin A$$ Hall

    • 5.1 …. #Zambia Today

      #SPAKA is an extremely hateful and jealousy person. The only thing that matters to SPAKA is that a TONGA is the president.. He has no dreams and ambitions, if you look at his online trending, 24/7 spilling trash on LSK. They are people on luskatimes such as #.TARINO ORANGE, #INDEPENDENT OBSERVER, #GENERAL KANENE, #AYATOLLAH, #DÉJÀ VU including KAIZER ZULU with his colourful language – all these guys have intelligence in them even if you don’t agree with their views.

    • @@spaka …… is one of the so called ( upnd uk branch) who went on rampage boasting in london after 2011 elections that hh would give them top diplomatic and government technocrats jobs.
      some of these chaps all they have done is work as care support workers and security guards, claiming unemployment benefits for more than 20yrs. majority of them did not even bother to acquire professional qualifications. @@spaka is just displaying his frustration, distress and fear.

    • Zambia Today, Malik, Mambo

      You are all examples of why castration should be forced on some people………your father’s should have been force castrated. You are all taking up global supplies for nothing……..

      I , live a very comftable life……….

      I work when ever I see an opportunity, though I don’t have to work…..

      Because of hard work , I took early retirement……..

      Even on my retirement funds I can employ some you stinky PF rats……….

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  6. We have trillions and trillions worth of Natural resources and yet we’ve reduced ourselves to beggers…typical Africans…HH has failed

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    • PF got KCM from Vedanta. How did we perform owning 100% shares of the mine? What you are saying is that PF could have paid the kaloba from the copper, our natural resource. What turned out was the looting of KCM, defaulted on loans and the most expensive election campaign by a ruling party.
      You can’t manage your resources, get someone to do it for you.

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  7. #6.2 Malik July
    31, 2022 At 11:50 am

    ” 5.1 …. #Zambia Today

    #SPAKA is an extremely hateful and jealousy person. The only thing that matters to SPAKA is that a TONGA is the president.. He has no dreams and ambitions, if you look at his online…..”

    Yes,………

    I’m am consciously giving the PF rats a taste of their medicines…………

    I advice you to look at LT posts Before 2021 elections,…….

    You will understand were I am comming from……

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  8. For 10 years of PF rule………..

    The PF rats were extremely hateful and arrogant, openly launching tribal attacks………….

    They thought zambia belongs to one tribe………..

    How ironic the same rats now complain when about me being hateful, when they done the same for 10 years unabated………

    The evidence is there on LT…………

    You know yourselves……….

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