Zambia’s Civil Societies Want IMF to Provide “detailed information” on Debt Restructuring

Lusaka, 22 January, 2023 / 8:25 PM

Officials of the Civil Society Organization (CSO) Debt Alliance are hoping that the International Monetary Fund (IMF) will use the visit of its Managing Director to Zambia “to provide some detailed information” about the country’s debt restructuring process.

In a statement read out by the CSO Debt Alliance’s Chairperson, Fr. Alex Muyebe, the officials say the January 21-23 visit of Kristalina Georgieva is a good gesture that may lead to unlocking bottlenecks in Zambia’s debt resolution.

“From this visit, we hope that the IMF will be able to provide some detailed information on the current position of debt restructuring in Zambia,” officials of the organizations that include the Jesuit Centre for Theological Reflection (JCTR) and Caritas Zambia say in the Friday, January 20 statement.

They say that they are also expecting that the visit will be an opportunity for the issuance of a “comparative analysis of similar debt-laden countries.”

Officials of the civil societies also hope that the IMF will provide insights into how governments can best address reform fatigue among their respective citizens.

Ms. Georgieva’s visit “should also be an opportunity for Government to provide updates on the implementation of the IMF ECF (Extended Credit Facility) program which was granted last year,” they further say.

Officials of the civil and faith societies add that they expect there will be more engagement between the Zambian government, IMF, and CSOs regarding the implementation of the ECF.

ECF is an IMF program that provides assistance to countries with prolonged dues and experiencing challenges in paying the debts. 

In August last year, the IMF approved a US$ 1.3 billion ECF to help Zambia restore its macroeconomic stability and promote economic growth after the country defaulted on its external debt in 2020.

In their January 20 statement, officials of the alliance which brings together Zambian CSOs working on debt-related issues say the visit of the IMF Managing Director is “a demonstration of confidence in the progress Zambia has made so far with regards to debt and economic management.”

They also express the hope that Ms. Georgieva’s visit to the Southern African country will provide assurances about the IMF’s commitment to ensuring Zambia’s debt restructuring. 

CSO Debt Alliance officials say they are optimistic that the new IMF proposed global sovereign debt roundtable of creditors and some borrower countries "gives hope for reducing the time lag for debt restructuring.”  

The roundtable of creditors is expected to meet for the first time in February 2023, alongside the G-20 Finance Ministers meeting in India.