Zambia has been invited to attend the first meeting between Zambia’s Official Creditor Committee and the IMF, which will be held on Thursday, June 16, 2022, as part of the G20 Common Framework.
Zambia will present its economic reform agenda and progress since reaching the Staff-Level-Agreement with the IMF in December 2021, according to a statement issued by Finance and National Planning Minister Situmbeko Musokotwane.
Dr. Musokotwane stated that this includes several revenue measures to reclaim fiscal space, such as making the tax system more efficient, developing a comprehensive public finance management strategy, and improving borrowing oversight.
“As unsustainable debt is choking our ability to respond to the economic challenges faced, we will also present our official creditors with the path we envision to reach debt sustainability and the support that will be needed from our international partners including initial assurances of debt treatment, a precursor for approval of our IMF programme,” he said.
Once approved, the IMF program will provide Zambia with much-needed fiscal space, assist in anchoring its reform agenda, and pave the way for more detailed debt restructuring talks involving all creditors to begin.
The Minister stated that addressing the debt crisis is critical and that unless this is done quickly, Zambia will be unable to invest adequately in economic and human development.
“The global economic recovery is at risk and swift implementation of the G20 Common Framework is essential to adequately respond to the scale of the challenge ahead. We
are confident that together with our creditors we will be able to achieve a mutually
beneficial solution to ensure Zambia’s return to sustainable debt levels”, Dr Musokotwane added.
The meeting will be held in Paris under a hybrid (physical and virtual) format with the Zambia attending virtually.