Govt welcomes the Official Creditors’ Committee’s decision  to consider Zambia’s request for debt restructuring

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 today.

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.