Creditor Meeting Set For Thursday As IMF Praises Government

The government will hold its first meeting with international creditors on Thursday, Finance Minister Situmbeko Musokotwane has said following meetings with the International Monetary Fund.

“We are one step closer to debt resolution because those discussions are beginning this Thursday,” Mr Musokotwane told a media briefing yesterday. He admitted, however, that the government’s aim of concluding negotiations by the end of June no longer seemed feasible.

The announcement followed praise from IMF Deputy Managing Director Antoinette Sayeh who endorsed the government’s economic reforms and said the fund was ready to support Zambia after creditors agree to measures to make its debts sustainable.

“We are eagerly awaiting those assurances, which can only come from creditors,” Sayeh said during a conversation with President Hakainde Hichilema in front of journalists at State House.  

Ms Sayeh arrived in Zambia on Tuesday for a two-day working visit. As well as her meeting with the president she is scheduled to sit down with Mr Musokotwane and Bank of Zambia Governor Denny Kalyalya

In December 2021, the government secured a staff-level agreement with the IMF for an extended credit facility. Discussions are now on-going with the IMF and other creditors to secure a full debt restructuring plan which will set Zambia back on a path towards economic prosperity.

Debt restructuring will allow the government to spend less money on servicing its debts each year, freeing up cash for infrastructure and social services. It will also make Zambia a more attractive prospect to international creditors and investors, who in turn will promote economic growth and job creation.