LONDON, Dec. 10 (Reuters) – A group of international creditors from Zambia on Friday said the country would have to provide more details on its recently agreed IMF support package and its own economic plans if the two sides were to reach a deal. debt relief.

The group, made up of international funds that own the country’s now defaulted bonds, said it was also crucial that countries like China, which has also relied heavily on coopers-rich Zambia, offer the same degree. debt relief.

“Intercreditor equity should also be of paramount importance in the authorities’ approach to restoring debt sustainability,” said the group, which calls itself the Committee of External Bondholders. Zambia, in a statement.

“To establish a process in which all parties have confidence, the Committee expects the authorities to engage in simultaneous discussions with the Official Creditors Committee for Zambia and the Bondholders Committee with a disclosure. equal information for both groups. “

Zambia became Africa’s first sovereign default in the pandemic era last November, after years of chronic government debt distress having already left it far too much debt to repay. Read more

After months of negotiations, he tentatively agreed last week to a three-year IMF $ 1.4 billion plan that will require it to cut spending and politically sensitive subsidies on electricity, fuel and electricity. Agriculture.

Zambia’s external debt includes around $ 3 billion in international bonds, $ 2.1 billion to multilateral lending agencies such as the IMF, and $ 3 billion to China and Chinese entities.

The bonds that make up that debt have jumped this year, following the election of a new president eager for an agreement with the IMF and a rise in copper prices, which are now double the level that they were when COVID-19 first ravaged the global economy.

“The Committee looks forward to engaging with the authorities in good faith and in a collaborative manner in the coming weeks,” added the group of duty bearers.

Reporting by Marc Jones, editing by Karin Strohecker and Louise Heavens

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