IMF Managing Director Welcomes the Statement by the Creditor Committee for Zambia under the Common Framework for Debt Treatments
IMF News, July 30, 2022
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- IMF Managing Director Welcomes the Statement by the Creditor Committee for Zambia under the Common Framework for Debt Treatments
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Bibliographic details
- Published: July 30, 2022
Summary of the Managing Director’s statement
- Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), welcomed the statement issued on July 30 by the Official Creditor Committee for Zambia under the Common Framework for Debt Treatments beyond the DSSI.
- The statement’s support for Zambia’s envisaged IMF-supported program and the Committee’s commitment to negotiate debt restructuring terms provide the IMF with official financing assurances.
- The Managing Director strongly endorsed the call by the Official Creditor Committee for private creditors and other official bilateral creditors to commit to comparable debt treatments.
Implications for IMF program approval and financing
- The delivery of these financing assurances will enable the IMF Executive Board to consider approval of a Fund-supported program for Zambia.
- Approval by the IMF Executive Board would unlock much needed financing from Zambia’s development partners.
Recognition of reform efforts and policy signal
- The Creditor Committee’s statement reflects progress in implementing the G20’s Common Framework.
- The Committee’s support recognizes the strong reform efforts of the Zambian authorities to:
- restore macroeconomic stability, and
- foster higher, more resilient, and inclusive growth.
- The Managing Director noted that this support demonstrates international partners are coming together to help countries resolve debt issues and sends a strong signal to other countries seeking to restore debt sustainability, achieve sustainable growth and poverty reduction.
Key numeric and program details
- IMF Press Release No. 22/282.
- Date of statement: July 30, 2022.
- Footnote [1]: On December 3, 2021, IMF staff reached staff level agreement with the Zambian authorities on a new arrangement under the Extended Credit Facility (ECF) for 2022-2025 in the amount of about SDR 980 million or about $1.3 billion.
IMF Press Release No. 22/282