Zambia has officially requested a debt treatment under the Common Framework agreed by the Group of 20 major economies and the Paris Club in November last year.
The newly adopted common framework for debt treatment beyond the G20 Debt Service Suspension Initiative is designed to facilitate timely and orderly debt treatment with broad creditor participation for DSSl-eligible countries.
The framework has been endorsed by the G20 and the Paris Club as part of a global response to the COVID-19 crisis. In recognition of the short-term liquidity relief and fiscal space created by the Framework, DSSI will not, in all cases, be sufficient to address the significant public debt challenges some countries are facing.
Debt treatment under the Common Framework will be based on the conclusion of the Debt Sustainability Analysis being prepared in collaboration with the International Monetary Fund and the World Bank in the context of IMF program discussions scheduled from 11th February 2021 to 3rd March 2021.
All G20 and Paris Club creditors are expected to coordinate their engagement with Zambia under the Common Framework with the objective of providing debt relief to the country.
In a statement issued by Secretary to Treasury Fredson Yamba, Finance Minister Dr. Bwalya Ng’andu said Zambia is committed to transparency and equal treatment of all creditors in the restructuring process and the country’s application to benefit from the G20 Common Framework will hopefully reassure all creditors.