Zambia's Official Creditors Expected to Sign Debt Relief MOU in May

Zambia's official creditors, which include China, are getting closer to signing a memorandum of understanding on debt relief to the country in May, in what would be a key step needed to pave the way for more IMF funding, sources told Reuters. Zambia has been in default since 2020 when it became one of the first major sovereign casualties of the COVID-19 pandemic era, though progress in overhauling its debt burden has been slow. Zambia's external debt amounted to $18.6 billion by end-2022, according to government data, with China being its biggest bilateral creditor. The International Monetary Fund wants official creditors - which met on Tuesday - to outline in a Memorandum of Understanding (MOU) with the government specific modalities of how they intend to deliver debt relief aligned with the parameters of a $1.3 billion 38-month programme signed off by the fund's board in August 2022. Read more.