(3 minutes read)
Discussions between Chad and the International Monetary Fund have made progress in helping the Sahelian country to seek to access to the G20’s common framework funds. Chad needs a debt agreement among creditors to avail of the concessional credit from the IMF. The IMF officials for seeking assurances from creditors will be meeting them including the multinational company Glencore.
Swiss mining giant Glencore is Chad’s largest creditor with a US$1 billion oil-for-cash loan to the country. In the case of Zambia also, the IMF insisted on creditors’ guarantees for sanctioning the credit since the Southern African nation wished to unlock IMF funding. The IMF authorities say that it can succeed in providing the financing assurances to Zambia within the next few weeks if Lusaka’s creditors agree to guarantee the loan. Earlier, there was a lurking fear that China might not agree to guarantee. But later, it concurred to guarantee the credit.
Read Also:
https://trendsnafrica.com/post-pandemic-economic-recovery-of-african-countries-gain-momentum/
According to IMF chief, Kristalina Georgieva, one of the challenges facing the world is on the debt front. Ethiopia is also on the move to restructure its debt. One-third of emerging markets and developing economies are in debt distress. African countries are faced with ever-increasing inflation and the effects of the pandemic. In addition to that, Addis Ababa grapples with the conflict in the Tigray region.
