World Bank Group Statement on Official Creditors’ Committee Agreement on Zambia Debt Relief

“The World Bank Group welcomes agreement by the Official Creditors’ Committee under the G20 Common Framework on the key parameters of the debt relief for Zambia. An agreement, which is consistent with the Joint WB-IMF Debt Sustainability Framework, represents a critical milestone toward restoring debt sustainability in this country.

“This decision and final completion of the agreement will help unlock private sector investment, restore growth and accelerate job creation in Zambia,” said Ajay Banga, World Bank Group President.

Since the start of Zambia’s negotiations under the G20 Common Framework in early 2021, the World Bank Group has disbursed around 1.1 billion USD to Zambia on highly concessional terms to support reforms and critical service delivery across sectors.  Starting July 1, 2024, Zambia will be eligible to receive World Bank support in the form of grants under IDA20.

The World Bank remains committed to accelerate the implementation of the G20 Common Framework. The World Bank, as a co-chair of the Global Sovereign Debt Roundtable, also remains engaged with all stakeholders to improve processes and build consensus on technical issues to accelerate debt restructurings.

Source – World Bank