Chad’s creditors close to agreement on debt relief – source

Chad’s creditors close to agreement on debt relief – source

Chad's creditors are close to reaching a debt relief agreement, which would be the first under a new G20 debt restructuring framework, a French Finance Ministry source said on Monday. Together with Ethiopia and Zambia, Chad is one three countries that have so far sought a debt restructuring under a G20 initiative established at the end of 2020. Progress has been glacial with some western G20 members saying that China, the biggest creditor to many African countries, is dragging its feet on reducing countries' debt burdens. As host to the Paris Club of mostly rich, Western government creditors, the French Finance Ministry is deeply involved in the debt-relief discussions under the G20 framework and is co-chair with Saudi Arabia of Chad's creditor committee. "We are close to an agreement and being able to communicate about an agreement on Chad which will give some visibility to this country," the French Finance Ministry source said. Although Chad is currently benefiting from high oil prices, the source added that it was important that both government and private sector creditors be ready to act in case debt servicing conditions become more difficult for the country. The source said that "active" discussions over Zambia were