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☆ IMF chief Georgieva cites 'fruitful exchange' with China on debt issues
▼ + stars: | 2022-12-10 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

WASHINGTON, Dec 9 (Reuters) - International Monetary Fund chief Kristlina Georgieva said she had a "fruitful exchange" with her Chinese counterparts this week on her repeated calls for accelerating debt treatments for countries like Zambia and Sri Lanka. Georgieva, World Bank President David Malpass and other financial leaders met in person in China's Anhui province this week with officials from the People's Bank of China, China's finance ministry and its EXIM Bank and China Development Bank. Georgieva said the discussions touched on the common framework for debt treatment set up in late 2020 by China, the United State and other Group of 20 major economies, as well as some specific cases of countries seeking debt relief. Implementation of the common framework process has been halting, with only one country, Chad, having completed the debt treatment process, and its agreement not resulting in any actual reductions of the country's debt. Georgieva said she saw "space for a platform for more systematic engagement on debt issues, where China can play an active role," but gave no further details.

☆ IMF says Chad debt deal cuts risks, protects against oil price fall
▼ + stars: | 2022-11-14 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

WASHINGTON, Nov 13 (Reuters) - The head of the International Monetary Fund on Sunday welcomed a long-awaited debt deal by Chad's creditors and said it would reduce the African country's risk of debt distress while guarding it against downside risks, including lower oil prices. Chad on Friday said it had reached a debt agreement with Swiss commodities trader Glencore Plc (GLEN.L) and other creditors. Sources said the deal called for some debt relief in 2024 in the form of a reprofiled debt service schedule, but added that it would not reduce Chad's overall debt level. Sources familiar with the agreement said it would protect Chad if oil prices dropped again, while restoring confidence and opening the door to fresh resources. The automatic mechanism would protect Chad if oil prices fell again, eroding revenues, they said.

☆ Chad agrees debt plan with creditors, including Glencore, minister says
▼ + stars: | 2022-11-11 | by ( Mahamat Ramadane | ) www.reuters.com time to read: +2 min

N'DJAMENA, Nov 11 (Reuters) - Chad has reached agreement on a plan with creditors, which includes Swiss commodities trader Glencore (GLEN.L), for its $3 billion external debt, which could pave the way for more IMF funding. It is also China's first participation in a finalised joint debt treatment deal with other creditors, a source close to the negotiations told Reuters. A third of the central African country's external debt of nearly $3 billion is commercial and concentrated in an oil-backed loan from Glencore. "We are pleased that all stakeholders have agreed on how Chad's external debt should be treated," a Glencore spokesperson said in an emailed statement. Chad's statement did not specify the terms of the debt relief agreement.

☆ EXCLUSIVE Glencore, Chad creditors agree in principle on terms of debt treatment - source
▼ + stars: | 2022-11-10 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

WASHINGTON, Nov 10 (Reuters) - Switzerland-based Glencore, China and Chad's other creditors have reached an agreement in principle on restructuring the African country's nearly $3 billion in external debt, a source close to the negotiations said on Thursday. Glencore (GLEN.L), a major private creditor, agreed late in October or early November to join the other creditors, the source said. Chad owes one third of its external debt to commercial creditors, and almost all of that to Glencore in oil-for-cash deals dating back to 2013 and 2014. The agreement now reached marks progress and reflects growing trust among creditors, including China, as they negotiate on debt issues, the source said. Chad's creditor committee is co-chaired by France and Saudi Arabia.

LONDON/WASHINGTON, Oct 23 (Reuters) - A failure to secure meaningful progress on a debt relief for the world's poorest nations at the International Monetary Fund and World Bank annual meeting in Washington has left policymakers, campaigners and investors frustrated. Two years ago the Group of 20 launched the Common Framework - a mechanism designed to provide a swift and comprehensive debt overhaul to nations buckling under debt burdens after COVID-19 shock that would reach beyond temporary debt payment moratoriums. The Common Framework is a good start, but you need some fixes." China's role as a lender to poorer nations and Beijing's foot-dragging on debt relief drew much ire at the Washington meeting. JPMorgan's Joyce Chang, whose bank held an investor seminar alongside the IMF World Bank gathering, said asset managers had more discussions on repayment challenges and restructurings for emerging markets than at any time since the 1990s.

☆ Hundreds flee massive flooding in Chad capital
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +1 min

N'DJAMENA, Oct 14 (Reuters) - Hundreds of inhabitants of Chad's capital N'Djamena have fled their homes due to massive flooding that has hit since Thursday, leaving parts of the city navigable only by boat. "I drove the children to school this morning and on my return our house was completely flooded with river water. In one area women have built an emergency camp out of thin wooden branches and cloth to provide shelter for their families. Floods are not uncommon during the central African country's rainy season, which usually runs from May to October in its southern regions. But this year the rains came early and were the heaviest in decades, quickly overwhelming drainage channels and waterways.

Together with Ethiopia and Zambia, Chad was one of three initial countries to seek a debt restructuring under a G20 initiative. That could happen in 2024, the source said, when Chad will face a high level of debt service payments. Chad's debt-relief discussions under the G20 framework have been led by the Paris Club and Saudi Arabia. A French finance ministry source on Monday said the creditors were close to a deal. The source said discussions were continuing with Zambia, whose finance minister also participated in the G7 meeting with African finance ministers, an event coordinated by current G7 president Germany.

☆ U.S. not expecting any big breakthroughs on debt issues this week -Treasury officials
▼ + stars: | 2022-10-11 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

REUTERS/Dado Ruvic/IllustrationWASHINGTON, Oct 11 (Reuters) - U.S. Treasury Secretary Janet Yellen views debt restructuring as a key priority, but senior Treasury officials said they do not expect any major breakthroughs on debt matters at this week's meetings of the International Monetary Fund and World Bank. Aiding Sri Lanka, one of the most urgent such cases, would require a process with key creditors outside of the G20 framework, the Treasury official said. Yellen, who last week warned that some countries would need "considerable debt relief," would discuss the issue with her counterparts during the week, a second Treasury official said. The Zambian government told investors on Friday it hoped it would agree debt relief terms with official creditors by the end of the year or early 2023. Chad's creditors are also close to reaching a debt relief agreement, a French Finance Ministry source said on Monday.

☆ IMF chief Georgieva aims to complete Zambia, Chad debt restructuring by year-end
▼ + stars: | 2022-10-10 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

Georgieva said the IMF was pressing for more predictability and timely resolution of requests for help under the G20 Common Framework. IMF and World Bank officials have repeatedly singled out China, the biggest creditor to many African countries, and private sector creditors for dragging their feet on reducing countries' debt burdens. The Zambian government on Friday told investors it hoped it would agree debt relief terms with official creditors by the end of the year or early 2023. The IMF estimates that Zambia needs $8.4 billion of "cash debt relief" - cutting both interest payments and loan repayments - from 2022 to 2025. Chad's creditors are close to reaching a debt relief agreement, a French Finance Ministry source said on Monday.

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