Debt restructuring discussions for African countries, Chad, Zambia and Ethiopia are progressing with the International Monetary Fund (IMF).
IMF spokesperson, Gerry Rice told newsmen that Chad has sought to access the G20’s common framework. But to benefit from the initiative which supports low Income Countries with unsustainable debt, Chad needs a debt agreement among creditors.
Rice further revealed that the IMF awaits assurances from Chad’s creditors to advance discussion.
“We need financing assurances, and we need assurance on debt sustainability, so, the Creditor Committee on Chad, we expect to continue to meet. We think it’s essential. Again, that an agreement be reached promptly with all creditors, including Glencore […]” Rice stated.
For Zambia, another country that has been keen on debt restructuring, Rice revealed that the same prerequisites are also necessary for Zambia since the Southern African nation wishes to unlock IMF funding. Yet again, Lusaka’s creditor’s committee has agree.
The IMF spokesperson said, “if official creditors can succeed in providing the financing assurances to Zambia within the next few weeks, we can then take that to our Board for consideration of a program; and, that could happen very soon after our Board recess, which is the first couple of weeks in August.”
While for Ethiopia, Rice also explained that the Creditor Committee has been formed under this G20 common framework. And will continue to work closely to provide the needed technical support for Ethiopia amidst its revenue challenge.
Many African countries depends on international creditors to fund critical aspect of their economies. External debts are not as contentious in many African states as the discipline to expend the funds appropriately on development centred projects, which has always been a course for concern amidst the nature of corruption that characterizes the political and public system in Africa.