After months of delay, Zambia is on the brink of securing a US$1.4bn facility with the International Monetary Fund (IMF).
In a statement over the weekend, Kristalina Georgieva, managing director of the IMF, said that support from the Official Creditor Committee for Zambia’s envisaged IMF-supported programme, together with its commitment to negotiate debt restructuring terms, accordingly, provides the IMF with official financing assurances.
The IMF statement followed a pledge from Zambia’s creditors to negotiate a restructuring of the country’s debts. The creditor committee said in a statement released by G20 chair Indonesia that it supported Zambia’s “envisaged IMF upper credit tranche program and its swift adoption by the IMF Executive Board.”
Zambia’s creditor committee added that the restructuring terms would be finalised in a memorandum of understanding.