To extricate itself after being in default last month on its debt to private creditors, Zambia has just turned to the IMF to finance a reform program that will sound like a structural adjustment plan.
It is well known that when it comes to fighting a forest fire, there is nothing better than a backfire. Likewise, when it comes to resolving a problem of default on a debt, there is nothing better than a new debt better studied and especially better spread over time.
Obviously, this is the option chosen by Zambia, which has just turned to the International Monetary Fund. This was announced by the Brettons Woods institution in a statement, affirming that “The Zambian authorities have officially requested a funding agreement (…) to support their reform efforts”.
A meeting did indeed take place between Edgar Lungu, the Zambian Head of State, with Abebe Aemro Selassie, Head of the Africa Department IMF.
For the moment, the amount of support for the IMF is still not revealed. Nevertheless, the Zambian problem relates mainly to Eurobonds which are of the order of 3 billion euros, on a global debt of 10 billion euros.
