LUSAKA, Feb. 5 (Xinhua) -- Zambia has officially applied for a debt treatment under the common framework agreed by the Group of 20 (G20) major economies and the Paris Club in November last year, a senior government official said on Friday.
The newly adopted common framework for debt treatment beyond the G20 Debt Service Suspension Initiative (DSSI) is designed to facilitate timely and orderly debt treatment with broad creditor participation for DSSI-eligible countries.
According to the release from the finance ministry, the framework has been endorsed by the G20 and the Paris Club as part of a global response to the COVID-19 crisis in recognition that the short-term liquidity relief and fiscal space created by the DSSI will not be sufficient to address the significant public debt challenges some countries are facing.
It added that all G20 and Paris Club creditors were expected to coordinate their engagement with Zambia under the common framework with the objective of providing` debt relief to the country.
Minister of Finance Bwalya Ng'andu said Zambia was committed to transparency and equal treatment of all creditors in the restructuring process and that the application to benefit from the G20 common framework will reassure all creditors on the commitment.
"Returning to sustainable debt levels is a national priority for Zambia and we are confident that debt treatment under the G20 common framework will help address Zambia's challenges and support Zambia's economic and financial recovery in the long-term," he said in the release.
The Zambian minister further said the government will begin formal talks with the International Monetary Fund (IMF) on Feb. 11, 2021, to negotiate an extended credit facility program. Enditem
