"We have an economic programme that is an important element
for the reform we are undertaking, but the second component, the
restructuring, is delayed," Nkulukusa said, on a public debt
panel during the World Bank and International Monetary Fund
spring meetings this week in Washington.
Zambia was the first African country to default during the
COVID-19 pandemic and is in talks for $18.6 billion of debt,
according to official data at the end of last year. While the
nation secured a $1.3 billion loan from the IMF in September, it
is still in talks with bilateral creditors such as China and the
Paris Club under the Group of 20's Common Framework.
Some 60% of low-income countries are in or near debt
distress, but the platform set up to help has failed to deliver
quick relief. Ghana is also negotiating its debt rework under
this platform, while Sri Lanka talks are also dragging since it
defaulted a year ago.
The next IMF payout to Zambia from the loan is contingent
upon its bilateral creditors reaching an agreement on the
long-delayed debt restructuring. The country recently completed
the first review of the programme, and the next one is expected
in about three months.
The country's secretary added that the delay signals
challenges and tests people's patience with tough policies as
"the population starts questioning what the government is
doing."
Ceyla Pazarbasioglu, director of the IMF's Strategy Policy
and Review Department, was more optimistic about Zambia's debt
restructuring during the panel. "There is hope for good news
next week", she said, without providing any further details.
The IMF official said that creditors have asked to share and
exchange information "sooner" during debt restructuring talks,
and added that the Washington-based lender is willing to do so.
"We will definitely do that work with our teams," she said.
(Reporting by Andrea Shalal and Jorgelina do Rosario in
Washington; writing by Rodrigo Campos, editing by Kirsten
Donovan)
(Adds details on Zambia debt restructuring process, additional
quotes)
By Jorgelina do Rosario and Andrea Shalal
WASHINGTON, April 12 (Reuters) - Zambia could lose gains
achieved so far from macroeconomic reforms if its ongoing debt
restructuring is further delayed, Treasury Secretary Felix
Nkulukusa said on Wednesday.
The nation defaulted on its overseas debt in 2020 and is
working on a restructuring with both bilateral creditors and
private bondholders, but talks have been dragging on amid a lack
of consensus on how to provide debt relief.
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