IMF chief encouraged by China's 'assurances' on Zambia debt
"During my visit, we got additional assurances that China will respect its commitment for debt restructuring in Zambia," she said during an interview in Washington.
"There is a saying, 'The proof of the pudding is in the eating;' we have to see the outcome of these commitments over the next months," she said.
Zambia became the first country to default on its debt burden -- estimated at more than $17 billion -- back in 2020, following the onset of the global pandemic.
The southern African country has since sought help through a G20 mechanism, but implementation has slow.
US Treasury Secretary Janet Yellen has accused China of dragging its feet on debt restructuring, while China has said it wants multilateral institutions including the IMF to sign up for debt restructuring -- something opposed by many member states.
"I'm encouraged by the fact that they now recognize that multilateral resolution is also good for China as a creditor," Georgieva said of China. "Why? Because it comes with fresh resources from the IMF, from the World Bank, for countries that are servicing debt, including to China."
"They also understand that the faster we move, the better for the debtors so they can return to growth, but also for the creditors," she said.
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