Minister of Finance and National Planning Situmbeko Musokotwane says the International Monetary Fund IMF assistance is required to act as a mediator between the Zambian government and the creditors or those that the government owes. In such a deal, creditors will be persuaded to re structure Zambia’s debt.
Dr. Musokotwane said that the Official Creditor Committee formation was anticipated within the next few weeks paving way for the commencement of the restructuring discussions with the Official Creditor Committee on Zambia’s debt, providing financing assurances to the IMF Executive Board to enable the approval of a US$1.4 billion Extended Credit Facility (ECF) for Zambia.
He said the path the country has taken to get into an economic program with the IMF is the only credible route to arrest the debt situation and the only credible approach for now that will help to deliver debt relief and a return to normalcy.
“The bilateral creditors will analyze Zambia’s debt situation as illustrated in the IMF’s Debt Sustainability Analysis. The bilateral creditors will then provide indications of the debt relief that they would be willing to provide to Zambia and indicate that comparability of treatment which will be expected from commercial creditors,” he said.