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IMF awaits creditor agreements on Chad, Ethiopia, Zambia debts

IMF Spokesman Gerry Rice attends a press conference at the 2016 Annual Meetings of the International Monetary Fund Headquarters and the World Bank Group at the IMF.   -  
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ZACH GIBSON/AFP or licensors

Debt crisis

Discussions between Chad and the International Monetary Fund have made progress. That’s what the IMF spokesperson, Gerry Rice, told a news briefing Thursday. The Sahelian country seeks to access the G20’s common framework. But to benefit from the initiative which supports low Income Countries with unsustainable debt, Chad needs a debt agreement among creditors.

"We need financing assurances, and we need assurance on debt sustainability, Rice stated. So, the Creditor Committee on Chad, we expect to continue to meet. We think it’s essential. Again, that an agreement be reached promptly with all creditors, including Glencore [...]"

Swiss mining giant Glencore is Ndjamena’s largest creditor with a $1 billion oil-for-cash loan to the country. Prerequisites are also necessary for Zambia since the Southern African nation wishes to unlock IMF funding. Yet again, Lusaka’s creditor’s committee has agree.

"If official creditors can succeed in providing the financing assurances to Zambia within the next few weeks, we can then take that to our Board for consideration of a program; and, that could happen very soon after our Board recess, which is the first couple of weeks in August", the spokesperson said.

Challenge on the debt front

According to IMF chief, Kristalina Georgieva, one of the challenges facing the world is on the debt front. Ehtiopia is therefore also on the move to restructuring its debt. A meeting of the creditor’s committee was confirmed.

"On Ethiopia, Gerry Rice started, we welcome that the Creditor Committee has been formed under this G20 common framework. And we have been and will continue to work closely to provide the needed technical support to the work of that Creditor Committee for Ethiopia and, specifically, we will meet with the Creditor Committee for Ethiopia the week of July 18th."

1/3 of emerging markets and developing economies are in debt distress, IMF spokesperson said. African countries are faced with an ever-increasing inflation and the effects of the pandemic. In addition to that, Addis Ababa grapples with the conflict in the Tigray region.