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Zambia seeks debt restructuring under G20 framework

Zambia seeks debt restructuring under G20 common framework

Zambia seeks debt restructuring under G20 common framework Reuters > By Reuters - 05 February 2021 - 18:13 Zambian flag Image: Picture: 123RF/GRAF VISION Zambia, which became Africa s first pandemic-era sovereign default late last year, said on Friday it had requested a restructuring of its debt under a new framework supported by the Group of 20 major economies. The precarious debt burdens of a number of African nations have worsened due to the economic fallout from the COVID-19 pandemic. Zambia did not make payment of a coupon on one of its dollar bonds in November, sending it into default. The G20 initially offered the world s poorest countries temporary payment relief on debt owed to official creditors under its Debt Service Suspension Initiative (DSSI). In November, it also launched a new framework designed to tackle unsustainable debt stocks.

After Default, Zambia Becomes Third Country Seeking G20 Debt Relief

After Default, Zambia Becomes Third Country Seeking G20 Debt Relief After Default, Zambia Becomes Third Country Seeking G20 Debt Relief February 05, 2021 Washington DC – Zambia requested the G20 coronavirus debt relief process, the Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative. The process allows up to 73 of the world’s poorest countries to seek support under the mechanism. “The pandemic is hitting the economies of poor countries pretty hard and many more countries will be requesting debt relief, noted Eric LeCompte who leads the religious development group Jubilee USA and advises the United Nations on debt issues. Zambia needs serious debt relief. Before the pandemic, 60% of Zambians lived below the poverty line.

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