World Bank president expresses deep concern on Zambia debt restructuring

Reuters: World Bank President David Malpass said on Tuesday he remained deeply concerned about the debt restructuring stalemate in Zambia and that the bank is working with India and the International Monetary Fund on the G20 debt restructuring process.

Zambia meanwhile has been stuck in default since it became the first COVID-era African nation to do so in November 2020. Its finance minister has said it is pushing to finish the long-delayed Common Framework restructuring by end of March or shortly after.

Ghana defaulted on its external debts in December and has since sealed a domestic debt swap and requested a restructuring of its bilateral debts via the G20’s Common Framework vehicle.

Malpass also said Sri Lanka was now eligible to get US $ 1.75 billion over four years.

India’s G20 presidency comes as its South Asian neighbors Sri Lanka, Bangladesh and Pakistan are seeking urgent IMF funds due to an economic slowdown caused by the pandemic and the Russia-Ukraine war.