Zambia announced on Friday that it had officially applied for restructuring under the G20 debt suspension initiative for the world’s poorest countries.
Zambia, the first African country to default on its debt during the pandemic, saw its external debt bulge to nearly $12 billion in 2020. The copper-rich country missed two interest payments over the past three months. Those interest payments totaled $98.6 million.
“Zambia is committed to transparency and equal treatment of all creditors in the restructuring process,” Finance Minister Bwalya Ng’andu said in a statement.
“Our application to benefit from the G20 Common Framework will hopefully reassure all creditors of our commitment to such treatment.”
After initially offering temporary debt relief, including the suspension of service on debt to official creditors, the G20 adopted a framework that encourages governments to defer or negotiate down external debt.
All G20 and Paris Club creditors are expected to coordinate their engagement with Zambia via the common framework, the statement said.
Zambian government officials are also due to hold talks with the International Monetary Fund (IMF) on February 11 to negotiate an extended credit facility.
Story compiled with assistance from wire reports
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