Developing countries in the grip of debt problems
debt problems gripping a number of developing world nations will be a core topic during the G20 summit in Delhi next month.
Below is a look at countries currently facing problems.
ZAMBIA
Zambia was the first African country to default during the COVID-19 pandemic and after a long-awaited burst of progress in recent months finally looks to be closing in on a repair plan.
In June, it clinched a $6.3 billion debt rework deal with the «Paris Club» creditor nations and its other big bilateral lender China. The details are still being worked on, but the government also hopes to reach a deal in the coming months with the international funds that hold its unpaid sovereign bonds.
The progress has also been cheered as a success for the struggling G20 Common Framework initiative, which was set up during the pandemic to try to streamline debt restructurings but has been hard to make work in practice.
SRI LANKA
Sri Lanka announced a debt overhaul plan at the end of June and has continued to make progress since, albeit not everywhere.
Nearly all holders of its domestic, dollar-denominated Sri Lanka Development Bonds (SLDBs) agreed to exchange their bonds into five new Sri Lankan rupee-dominated notes that will mature between 2025 and 2033.
Another part of the domestic debt plan has faced delays, though, with a key deadline on a Treasury bond exchange delayed three times and now set for Sept. 11.
Central bank chief Nandalal Weerasinghe has said the country's big foreign creditors such as India and China are awaiting the conclusion of the domestic debt operation before continuing discussions.
He said negotiations will be held in parallel with the first review of its $2.9 billion International Monetary Fund (IMF) bailout programme due
