Zambia Debt Restructuring Talks “Quite Encouraging”, Says Yellen

Janet Yellen, the U.S. Treasury Secretary, has told reporters that today’s talks between Zambia and its official creditors are advancing, with a debt restructuring agreement in sight.

Yellen was speaking to the press after arriving in Paris to join the Global Climate Finance conference, a summit designed to combat poverty and climate change in order to achieve “climate solidarity” with developing nations.

In her speech at the U.S. Embassy, Yellen said that she was “encouraged by progress on Zambia and I think debt treatment can move forward soon”. She added that China, Zambia’s biggest creditor, had played a key role in negotiations.

Yellen has been a vocal supporter of Zambian debt relief. She met with President Hakainde Hichilema during her January 2023 tour of Africa, and asked China to engage with Western creditors to reach a debt restructuring agreement. Today, she reiterated that “Delaying debt treatment hurts both creditors and debtors. It simply worsens the economic fundamentals and increase the amount of debt relief borrowers will eventually need”.

Yellen also spoke of the plight of other nations who would benefit from Paris Club of creditors talks similar to those of Zambia, insisting that “all creditors for Ghana and Sri Lanka need to provide timely debt treatment in line with their financing assurances”.