France and UK to co-chair body for Zimbabwe's $21.3 billion debt restructuring
France and the UK have agreed to co-chair a Debt Consultative Group aimed at helping Zimbabwe restructure its debt, estimated at $21.3 billion. The Finance Ministry of Zimbabwe announced that the group will hold its first meeting later this month. The objective of this group is to establish a transparent, predictable, and institutional platform for engaging with creditors. Over the coming months, the focus will be on Zimbabwe's progress under an International Monetary Fund staff-monitored program and supporting a credible pathway to clear arrears with international financial institutions. Zimbabwe has been unable to access international capital markets since 1999 due to defaulting on debts owed to various lenders, including the World Bank, the International Monetary Fund, the Paris Club of creditors, and the African Development Bank. The IMF approved a 10-month staff-monitored program for the country in February, which is considered a preliminary step towards a potential fund-supported facility.
