Zambia Set to Sign MOU on Debt Restructuring with Official Creditors, Paving the Way for IMF Funding
Zambia is on the brink of signing a crucial Memorandum of Understanding (MOU) to facilitate the restructuring of its debt with official creditors. Finance Minister Situmbeo Musokotwane has revealed in Marrakech, Morocco that significant progress has been made, marking a key milestone in securing the next tranche of funding from the International Monetary Fund (IMF).
Dr. Musokotwane, while speaking to Reuters during a visit to Marrakech, expressed optimism regarding the MOU’s imminent signing. He confirmed that the negotiations between Zambia and its official creditors have advanced to a stage where the agreement is close to being finalized.
“The MOU will hopefully be signed next week, as we are in the final stages of reaching an agreement,” Dr. Musokotwane informed reporters after participating in panel discussions.
Zambia reached an agreement in June to restructure a substantial $6.3 billion debt owed to foreign governments, including China and members of the Paris Club of creditor nations. To formalize this significant debt deal, Zambia must sign an MOU with its official creditors.
This development is seen as a significant step in Zambia's efforts to stabilize its fiscal situation and chart a sustainable path for its economic recovery. The debt restructuring agreement is expected to provide much-needed financial relief to the country, helping it address the economic challenges it has faced in recent years.
By securing this MOU, Zambia positions itself to receive critical support from the International Monetary Fund, which is a key player in the country's efforts to restore its economic stability and ensure a more prosperous future.
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