IMF Managing Director Welcomes Statement by Zambia’s Creditors’ Committee Under Common Debt Framework

Following the July 30 statement issued by Zambia’s Committee of Creditors under the Common Framework for Debt Treatment Beyond the DSSI, Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), released the following statement:

“I am very pleased to welcome the statement issued on July 30 by the Committee of Official Creditors of Zambia. The Committee of Official Creditors’ support for Zambia’s envisaged IMF-supported terms of the debt restructuring, provide the IMF with formal financing assurances. I strongly endorse the call by the Committee of Official Creditors for private creditors and other official bilateral creditors to commit to comparable debt treatments.

“The provision of these financing assurances will enable the IMF Executive Board to consider approval of an IMF-supported program for Zambia and unlock much-needed financing from Zambia’s development partners. [1]

“I would like to thank the members of the Creditors’ Committee for their work on Zambia’s request for debt treatment. It shows that progress is being made in implementing the G20 Common Framework and acknowledges the Zambian authorities’ significant reform efforts 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 problems, sending a strong signal to other countries seeking to restore debt sustainability, achieve sustainable growth and to reduce poverty.

[1] On December 3, 2021, IMF staff reached a staff-level agreement with the Zambian authorities on a new arrangement under the Extended Credit Facility (ECF) for 2022-2025 in the amount of approximately 980 million of SDRs, or about $1.3 billion.

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