Wednesday, June 19, 2024

Yellen says Zambia debt deal important for G20 debt restructuring credibility

Share

U.S. Treasury Secretary Janet Yellen says it was important for Zambia’s creditors to conclude an equitable debt restructuring deal for the country as quickly as possible to build credibility for the G20 Common Framework for poor-country debt relief.

Yellen said in remarks at the start of a meeting with President Hakainde Hichilema that she would discuss the need for debt sustainability and support for Zambia from international financial institutions.

“I believe achieving fair burden sharing among all bilateral official and private creditors will be important for building credibility for this important initiative,” Yellen said, without mentioning China, Zambia’s largest bilateral creditor.

International Monetary Fund chief Kristalina Georgieva said after a trip to China last week that she had a “fruitful exchange” with Chinese authorities on the need for them to accelerate debt treatments for Zambia, Sri Lanka and other countries burdened by unsustainable Chinese loans.

Treasury Secretary Janet Yellen will travel in January to Zambia, South Africa and Senegal, her office announced Friday, in what will be the first of a string of Biden administration official visits to sub-Saharan Africa next year.

The world’s second-largest continent is crucial to the global economy due to its rapidly growing population and significant natural resources.
China’s deepening economic entrenchment in African nations, surpassing the U.S. in trade with Africa to become one of the world’s largest creditors, is also a motivator for the U.S. to deepen ties with African nations.

President Joe Biden on Thursday announced during a U.S. summit with African leaders that he plans to make a trip to the region next year, as do Vice President Kamala Harris, first lady Jill Biden and a number of Cabinet secretaries.

Yellen, who will visit Africa from Jan. 17-28, has spoken at length publicly about China’s financing practices on the continent, calling them “economic practices that have disadvantaged all of us.”

Zambia, for instance, is renegotiating it’s nearly $6 billion debt with China, its biggest creditor.

During a closed-door meeting with Zambian President Hakainde Hichilema at the Africa Leaders Summit on Thursday, Yellen said they discussed “the need to address debt sustainability and the imperative to conclude a debt treatment for Zambia.”

Treasury said Yellen will also discuss the spillover effects of Russia’s invasion of Ukraine on Africa’s food supply.

Other topics will include how the U.S. is working with African leaders to promote an energy transition that factors in the impacts of climate change in Africa and how to prepare for future pandemics through the Pandemic Fund announced in June.

At the summit this week, Biden announced plans to spend $2 billion to help bolster food security on the continent.

9 COMMENTS

  1. “During a closed-door meeting with Zambian President Hakainde Hichilema at the Africa Leaders Summit on Thursday, Yellen said they discussed “the need to address debt sustainability and the imperative to conclude a debt treatment for Zambia.”” I find it very annoying that HH is running around trying to sort out the debt mess left by the PF and yet they are the ones in the fore front calling him names such as Puppet of the West etc. Very, very ungrateful and heartless people. They defecated in the kitchen and now they are busy mocking the one trying to clean up the mess they left.

  2. PF HAVE NOTHING TO OFFER
    EVENTUALLY THE MASSES OF ZAMBIA WILL REALISE THE DAMAGE DONE BY PF AND OTHER PREVIOUS GOVERNMENTS
    ONE SHOULD REMEMBER THIS STARTED IN 1964 WITH KAUNDA AND HIS MISPLACED CONCEPTIONS
    THERE IS NO INSTANT SOLUTION

    3
    1
  3. Americans are criminals busy plotting on how steal minerals from Zambia, It’s a pity we have a puppet…who thinks of what is best for his friends and not the people of Zambia…
    Ama rubbish.
    1.No medicine in hospitals.
    16-21 pregnant mothers die per week this is according to the least report on ministry of health.
    2. Farmers haven’t been given inputs meaning the cost of mealie meal will go up.
    3. Fuel is expensive which is at K 27.00 per litre.
    4. Electricity tariffs have been increased.
    5. Democracy is under threat.
    6. No good governance.
    7. Mining companies are on tax holiday meaning Zambia is losing out 3.7 billion dollars per year.
    8. Lying is the nature of upnd which is extremely saddening.
    9. No direction.
    10. Load shedding after name call the former president names…

    1
    5
  4. When are we going to be able to tell others what we are being told? That is my ambition. Not this rubbish of begging bowl mo mwayambila a mambala.

  5. 10. Load shedding after name call the former president names..It’s your turn now, it’s sad that the country can be exporting power and load shedding its own people without shame.
    therefore upnd is a failed project.
    I end here.

    1
    1
  6. On the surface, this looks good but experience will tell you that Zambia has been here before. We can’t negotiate from a weak position without concessions. HH knows that debt is a trap and the creditors will make sure you continue to pay them for an extended period of time. We have seen the US and Europe throw billions at the war in Ukraine without thinking or negotiating but when it comes to liberating African lives everything including forcing us to be gays is taken into account. HH would have got a better deal from his African colleagues to pay off that $6 billion than play in the hands of people whose only goal is to keep Africa poor. I just wonder at times where this man was when president Mwananwasa got us out of that debt trap.

  7. But what HH doing there instead of Beijing its biggest creditors..he wants muzungu to pat him on the back like their good lapdog.

    1
    1

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading