IMF calls for debt restructuring in Zambia and Ethiopia
Why it matters
The IMF's call for debt restructuring in Zambia and Ethiopia is significant as both countries seek IMF loans. Debt restructuring would help these countries to manage their debt and implement economic reforms. The IMF's requirement for debt relief commitments from a country's bilateral creditors before it agrees to a loan programme is also significant.
What the papers say
How we got here
Zambia defaulted on its sovereign debt in 2020, becoming the first African country to do so during the COVID-19 pandemic. Ethiopia's government and the Tigray People's Liberation Front (TPLF), a guerilla force-turned-political party, agreed on Nov. 2 to stop fighting following talks. Ethiopia's second most populous country requested a debt restructuring under the Group of 20's Common Framework process in early 2021, but progress was held up by a two-year civil war in the Tigray region.
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