PARIS (Reuters) – A deal on Zambia’s debt restructuring is expected to be announced later on Thursday at the Paris summit on debt relief for poor countries, four sources said.
“Creditors have agreed to the debt restructuring,” one of the sources said.
Emmanuel Moulin, president of the Paris Club of Creditor Nations, said on Wednesday that Zambia’s creditors were close to being able to propose the terms of a debt restructuring agreement at a summit.
Zambia has struggled to reach relief agreements with foreign creditors since it defaulted on its sovereign debt in 2020 in the wake of the coronavirus pandemic, with many Western officials claiming it is the country’s largest bilateral creditor nation. One China is accusing it of being a drag.
“On debt restructuring, today we’re talking about Zambia, I think it’s a great example of celebration,” IMF Managing Director Kristalina Georgieva said at a panel discussion at the summit.
Zambia is seen as a test case for poor country debt restructuring under the G20 common framework in 2020, and has been criticized by many for being twice late.
African Development Bank President Akinwumi Adesina said at the same summit panel: “Let’s face the fact that (the common framework) is too slow. We need to make it work faster and at scale.” .
So far only Chad has pulled out of the common framework with a debt relief agreement, but Ethiopia and Ghana, along with Zambia, are still awaiting legal progress.
Leigh Thomas and Elisabeth Pinault report in Paris and Chris Moufla in Lusaka.Editing: Susan Fenton
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