Zambia’s debt restructuring deal is due to be announced later today at a Paris Summit on easing poor countries’ debt burdens, four sources familiar with the matter said.
The head of the Paris Club of creditor nations, Emmanuel Moulin, had revealed on Wednesday, June 21, that Zambia’s creditors were now close to being able to propose the terms of a debt restructuring deal at the summit.
This is good news as Zambia has been struggling to agree on a relief deal since it defaulted on its sovereign debt in 2020 in the backwash of the Covid-19 pandemic.
In the aftermath of all these, nations have accused China, Zambia’s largest bilateral creditor of ‘acting reluctant’ in concluding this deal
Zambia is seen as a test case for the 2020 G20 common framework for restructuring poor countries’ debt, which has faced much criticism for being too slow.
It is noteworthy to mention, however, that Chad has been the only country to so far, emerge from the common framework with a debt relief deal, while Ethiopia and Ghana are still awaiting progress on their cases, as well as Zambia.
