Following the announcement of an agreement being reached by Zambia and its official creditors under the Group of 20 Common Framework, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), issued the following statement today:
“I warmly welcome Minister of Finance Situmbeko Musokotwane’s announcement that the Zambian authorities have reached an agreement with their official creditors on a debt treatment, consistent with the objectives of the IMF-supported program. This unique and innovative agreement specifies both a baseline and a contingent treatment that would be automatically triggered if the assessment of Zambia’s economic performance and policies improves.
“I want to thank the official creditor committee, especially co-chairs China and France and Vice-Chair South Africa, for all their work to reach this agreement. This is a significant milestone for the G20 Common Framework under which China, India, Saudi Arabia and Paris Club creditors joined forces to agree deep debt relief for Zambia.
“This agreement paves the way for the completion of the first review of Zambia’s three-year Extended Credit Facility Arrangement, which is helping put Zambia on a path toward sustainable economic growth and poverty reduction.
“I look forward to the Executive Board taking up this review in the coming weeks and the continuation of our productive collaboration with Zambia in the period ahead.”
Meanwhile, in a determined push to address Sri Lanka’s debt crisis and foster reconciliation, President Ranil Wickremesinghe outlined plans to finalize the debt restructuring process by September.
Collaborating closely with parliament, the President aims to develop a comprehensive strategy for resolving the nation’s financial burdens.
While debt restructuring remains a key priority, President Wickremesinghe noted that his primary focus lies in completing vital structural reforms.
Aiming to accelerate economic liberalization and attract increased investments, which are intended to bolster Sri Lanka’s financial prospects and drive a more favourable balance of trade in the long term.