France and Great Britain have agreed to jointly lead an organization aimed at helping Zimbabwe restructure its $21.3 billion state debt to creditors, according to the country’s Ministry of Finance.
The newly formed Debt Advisory Group will hold its inaugural meeting at the end of this month. The ministry noted that the group’s objective is to establish “a transparent, predictable, and institutional platform” for engaging with creditors.
In the coming months, the primary focus will be on Zimbabwe‘s adherence to the International Monetary Fund (IMF) monitoring program and on developing a viable mechanism for addressing overdue debts to international financial institutions.
Zimbabwe Remains Excluded from International Capital Markets
Zimbabwe lost access to international capital markets in 1999 after defaulting on its debt obligations to various creditors, including the World Bank, International Monetary Fund, Paris Club of Creditors, and the African Development Bank.
In February, the IMF approved a 10-month monitoring program for the country, which is viewed as a significant step toward potential financial support from the fund.
According to the annual bulletin on state debt, Zimbabwe‘s total state debt stands at $21.3 billion.
Source: Bloomberg
