Zambia is on the verge of signing an agreement on its external debt with its creditors, according to an IMF spokesperson, who qualifies the comments of Kristalina Georgieva, the boss of the organization.
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The agreement “has was finally signed », First welcomed Kristalina Georgieva during a round table on the occasion of the annual meetings of the International Monetary Fund (IMF) and the World Bank, which are being held until Sunday in Marrakech (Morocco). Then an IMF spokesperson corrected this by explaining that the debt agreement is close but not yet signed.
This is the last step to validate the agreement in principle signed in June to restructure $6.3 billion in external debt, one of the conditions set out by the IMF in the agreement detailing its aid program with the Zambiain order to release all disbursements.
“ All of our creditors have been wonderful, thank you all for giving us this opportunity “, declared the Zambian Minister of Finance, Situmbeko Musokotwane, who recalled “ how embarrassing it is to find yourself in a debt crisis “. Such an agreement is, however, not enough to offer the type of life that young Africans want to live “, he added, believing that it was now necessary to bring “ better growth that creates jobs, so that we no longer have young people trying to cross the Sahara and the Mediterranean “.
A debt of 32.8 billion dollars
Zambia’s debt, which has exploded in recent years, is estimated at $32.8 billion, including $18.6 billion from foreign creditors like China, its main lender. Zambia was the first African country to default on its debt in 2020 after the outbreak of the Covid-19 pandemic.
Former Zambian President Edgar Lungu is notably accused of having undertaken major infrastructure projects and of having over-indebted the country to China ($4.1 billion), which is building airports, roads, schools, factories and even police stations in this country. “ If you combine what we spend on salaries for our public officials and the service of this debt, it represents more than 90% of the taxes collected. Now we have got help, we can concentrate the money on the most vulnerable », added Situmbeko Musokotwane.
Zambia reached an agreement with the IMF for a $1.3 billion aid program in August 2022 and successfully passed the first review, which allows the IMF to ensure implementation. implementation of the reforms planned in the program, carried out in July 2023.
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(With AFP)