The government says it has welcomed the Official Creditors Committee’s decision to consider Zambia’s request for debt restructuring, as it will help unlock the IMF programme approval for the country.
Minister of Finance and National Planning Situmbeko Musokotwane says the move by the Official Creditors Committee is welcome.
Dr Musokotwane has reiterated government’s commitment to implement the required economic reforms and work hand in hand with both the Official and Private creditors to agree on terms of debt restructuring in line with the comparability of treatment principle.
This was contained in a statement released by Secretary to Treasury in Lusaka yesterday.
Earlier it was reported that the Indonesia G20 Presidency have expressed support for the implementation of the ‘Common Framework for Debt Treatments beyond the DSSI’ and have welcomed the progress made by the creditor committee on Zambia’s formal request for debt treatment, and that they are looking forward to the conclusion of the negotiation of the terms of a restructuring of creditor committee member claims and agreement of an MoU.
On July 18th, The creditor committee for Zambia, co-chaired by China and France, with South Africa acting as a vice-chair, with IMF and World Bank staff in attendance met virtually and discussed Zambia’s macroeconomic and financial situation, including its long-term debt sustainability and its formal request for debt treatment under the ‘Common Framework for Debt Treatments beyond the DSSI’.
The Common Framework for debt treatment beyond the DSSI (Common Framework) is an initiative endorsed by the G20, together with the Paris Club, last November to support, in a structural manner, Low Income Countries with unsustainable debt.
This IMF credit has dragged and lagged because we excluded the Chinese input in past discussions. That’s how we shot yourselves on the foot. If the leg injury has healed is yet to be seen.
Mulongoti above, hh thought he was clever and wanted muzungu amokonde by sidelining our Chinese brothers and sisters. Now see their lives being controlled by muzungu. Hh is just a mere puppet of the west
The day the deal between IMF and GRZ will look through like an explanation that you then test through study and experimentation, then maybe. Not every time you read the deal between IMF and GRZ reads like a conjecture.
IMF is in a very difficult situation and to have to make a hard decision.
IMF Cannot turn a blind eye the way GRZ as treated small investors.
@Mulongoti Machayi
Don’t spread lies that Zambia excluded the Chinese input in past discussions.
1) China is a novice when it comes to debt restructuring and did not know how its done. China just grabs your assets if you fail to pay.
2)The PF were actually borrowing money from Chinese commercial lenders as opposed to bilateral loans with the government. So China had to take the trouble of bringing together each of those different interests.
But Zambias success is a big plus to Xi Jinping’s given what happened to other borowers like Sri Lanka , Djibouti who are messed up with huge Chinese debt.