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Zambian President Hakainde Hichilema expressed confidence that his government would secure a plan to restructure his country’s debt at talks in Paris this week with its creditors. In 2020, the nation became the first country on the African continent since the start of the Covid-19 pandemic to default on its US$18.6 billion foreign debt.
Zambian President Hakainde Hichilema expressed confidence that his government would secure a plan to restructure his country’s debt at talks in Paris this week with its creditors. In 2020, the nation became the first country on the African continent since the start of the Covid-19 pandemic to default on its US$18.6 billion foreign debt.
Zambia has sought help to restructure its debt through a G20 mechanism co-chaired by Paris and Beijing, but so far without convincing results. President Hichilema, who is in France for an international summit on finance, said he expected an agreement soon. He said his presence in France alongside his French counterpart Emmanuel Macron and Chinese Premier Li Qiang should help speed up the process.
The United States has accused Zambia’s biggest creditor, China, of dragging its feet. According to a senior US Treasury official, however, progress has been made and an agreement on official bilateral creditors is imminent. A restructuring of Zambia’s debt would represent a key step towards unlocking an International Monetary Fund aid package for the country.
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The Paris Club, an informal group of creditors whose role is to find solutions to countries’ debt repayment difficulties, began meeting on Wednesday on the eve of an international summit in the French capital aimed at reimagining the global financial system in the face of climate change.
