Zambia would be the first of three countries that have requested debt relief under the Common Framework agreed by the Group of 20 major economies and the Paris Club of official creditors to move forward in what has been a very slow process.
Russia's war in Ukraine has sent food and energy prices surging higher, exacerbating debt problems already plaguing 60% of low-income countries and now threatening a growing number of middle-income countries. Experts say movement on Zambia could help spur more interest among heavily indebted countries, especially given the growing risk of a global recession, higher interest rates and continued outflows of capital from emerging market economies.
IMF and World Bank officials have been blunt about the failings of the Common Framework. They are pushing for finance officials of the G20 major economies to apply more pressure on China and private sector creditors to participate.