Zambia is on the verge of completing its debt restructuring process, a significant milestone in its economic recovery.
The country, which defaulted on its external debt in 2020, has made significant progress in reaching agreements with both official and private creditors.
France, a key player in the debt restructuring process, recently signed a bilateral agreement with Zambia, paving the way for other creditor nations to follow suit.
The G20 Common Framework, which aims to ensure an orderly debt restructuring process for low-income countries, has played a crucial role in facilitating these agreements.
While the process has faced challenges, the successful progress made in Zambia’s case has provided valuable lessons for other countries facing similar debt crises, such as Ghana and Ethiopia.
The G20 Common Framework, despite its initial hurdles, has proven to be an effective mechanism for addressing debt sustainability issues in developing countries.
Zambia’s successful debt restructuring is expected to unlock access to foreign financing and pave the way for economic recovery and sustainable growth.
This positive outcome serves as a beacon of hope for other countries grappling with debt challenges and underscores the importance of international cooperation and coordinated efforts to address global economic imbalances.