First meeting of the Creditor Committee for Zambia under the Common Framework for Debt Treatments beyond the DSSI

Statement

June 16, 2022 – On June 16, 2022, 16 countries have formally formed a creditor committee under the Common Framework, co-chaired by China and France and vice-chaired by South Africa, to discuss the Zambian authorities’ request of a debt treatment under “the Common Framework for Debt Treatment beyond the DSSI” endorsed by the G20 and the Paris Club.

The Zambian authorities attended the meeting and formally presented their request for a debt treatment. The IMF and World Bank representatives presented the latest macroeconomic developments regarding Zambia and the current status of their relationship with Zambia.

Consistent with members’ national laws and internal procedures, the creditor committee for Zambia will pursue its work to find an appropriate solution to external debt vulnerabilities of Zambia, in a coordinated manner.

As outlined in the Common Framework, the creditor committee stressed the importance for private creditors and other official bilateral creditors of Zambia to provide debt treatments under the Common Framework on terms at least as favorable, in line with the comparability of treatment principle.

Background notes

1. The creditor committee for Zambia was formed on June 16, 2022, in application of the “Common Framework for Debt Treatments beyond the DSSI” endorsed by the G20 and the Paris Club in November 2020.

2. The members of the creditor committee are representatives of countries with eligible claims on Zambia. China and France co-chair the creditor committee while South Africa acts as a vice-chair.

3. Observers at the meeting were representatives of the International Monetary Fund and the World Bank Group.

4. The delegation of Zambia was headed by Hon. Dr Situmbeko Musokotwane, Minister of Finance and National Planning.

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