Creditors Call For Zambia To Submit Debt Plan To IMF

Zambia’s newly-formed creditor group is urging the government to submit plans for total debt overhaul to the International Monetary Fund (IMF) to help secure a bailout and put the country’s finances on firmer footing. 

The government has been told to run its plans for reform by IMF in order to access aid to support economy recovery. 

Talks between government officials and the IMF kicked off on Monday after Zambia’s request for emergency funding was refused on the basis of debt insolvency. 

With debt forecast to exceed GDP, the government has hired French firm Lazard Ltd to advise on the situation. 

Rafael Molina, a managing partner for the creditor group’s advisory firm, told Bloomberg “You want to see a situation where the government is emerging from a crisis, not kicking the can five years down the road”.

Zambia currently has approximately US$11 billion in external debts. According to Bloomberg, about $56 million more is due to be tacked on in interest by the end of July.