By Rédaction Africa Links 24 with Reuters
Published on 2024-01-17 22:10:59
The U.S. Treasury Department’s top international official, Jay Shambaugh, engaged in discussions with Zambia’s finance minister, Situmbeko Musokotwane, on Wednesday. The discussions centered around Zambia’s debt restructuring and its response to a recent cholera outbreak, as reported by the U.S. Treasury Department.
Zambia has been grappling with a severe cholera outbreak that has resulted in the death of at least 333 individuals since October. The cumulative cases of cholera during this period have exceeded 8,000, according to the U.S. Embassy in Zambia. Shambaugh expressed the U.S. government’s commitment to collaborating with Zambia to eradicate the outbreak during his conversation with Finance Minister Musokotwane.
In addition to the cholera outbreak, Zambia, a major producer of copper in Africa, defaulted on its debts three years ago during the COVID-19 pandemic. The country’s efforts to restructure its debt have been plagued by delays. Shambaugh acknowledged Zambia’s progress under its International Monetary Fund program and urged the continuation of economic reforms, as stated by the Treasury Department.
Despite the country’s efforts, Zambia faced a setback when its official creditors, including China and members of the Paris Club of creditor nations, rejected a preliminary restructuring deal in November. However, in December, the IMF approved an immediate $187 million loan payout to Zambia and noted that the country was revising a restructuring proposal for $3 billion of bonds, which had been rejected by official creditors in November.
The discussions between the U.S. Treasury Department and Zambia also touched upon the country’s ongoing debt restructuring under the Common Framework and its endeavors to finalize negotiations with all remaining creditors. The Common Framework process, established in 2020 in response to the COVID-19 pandemic, aims for debtor countries to reach comparable restructuring deals with official and commercial creditors, in line with the G20’s objectives.
Zambia stated its aim to reach key conditions for debt relief no later than the first quarter of 2024, indicating its commitment to resolving its debt crisis. The engagement between the U.S. Treasury Department and Zambia underscores the ongoing efforts to address Zambia’s debt restructuring and the urgent need to contain the cholera outbreak.
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