International Monetary Fund (IMF) managing director Kristalina Georgieva has announced China commitment to joining Zambia’s creditor committee, one of three countries that has sought debt relief under the G20 Common Framework agreed with the Paris Club of official creditors.
This happens even as Zambia’s finance minister complains about delays to the country’s debt restructuring.
Zambia became the first country during the pandemic-era to default in 2020 and is struggling with a debt burden of almost $32 billion, about 120% of its Gross Domestic Product (GDP).
The most recent Zambian government data shows that at the end of 2021, China and Chinese entities held $5.78 billion of Zambia’s debt. However, the country, which has become the world’s largest creditor, has been reluctant to move forward with restructuring deals.
I’ve called on China to specifically for example participate right away in a meeting for Zambia, that wishes to undergo debt restructuring. And I am hopeful that China will agree to play a more constructive role.
U.S. Treasury Secretary Janet Yellen
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