Economy

Zambia Targets Debt Restructuring Deal By April

Lusaka ~ Wed, 30 Sept 2020

By ZR Reporter

Finance minister Dr Bwalya Ng’andu has disclosed that Zambia is hoping to reach a debt restructuring agreement with creditors by April, 2020, a move that will see the country getting nearly US$1 billion of debt service relief from its requests.

Dr Ng’andu told creditors via webcast that the decision to restructure debt will help the country get on a path of recovery.

“We have engaged systematically with our official creditors for debt service suspension as well as our commercial creditors to seek similar debt service treatment, including the rescheduling of past due arrears accumulated throughout the year. We hope to be in a position to reach an agreement in principle with our external creditor community on a debt treatment and with the IMF on a staff level agreement for a programme by the end of the standstill period,” Dr Ng’andu said.

Zambia has launched a vote with its Eurobond holders, proposing to defer interest payments on its three outstanding dollar-denominated bonds in a standstill period until April 14, 2021.

Relief, once debt service suspensions are granted, will be around $81 million under the Debt Service Suspension Initiative (DSSI) and to $897 million on commercial claims, bringing the total to almost $1 billion.

The country’s external public debt burden amounts to around $12 billion with $3 billion outstanding Eurobonds, $3.5 billion of bilateral debt, $2.9 billion of other commercial debt and $2.1 billion owed to multilaterals while around $3 billion of public debt is owed to China.

China or debt owed by state-owned power company Zesco.

6 Comments

  1. HaHa 😂

    We are in this mess in the first place bcoz of pf govt mismanagement and failures, you are making the innocent people of Zambia suffer for something they didn’t sign up for. That’s why next year we’re kicking your black asses out of power

  2. NKUMBULA

    If this was used appropriately for the benefit of the public, then no harm with repaying back, but if it was selfishly used only for the benefit of a small group of people, then there is a large room for an improvement. Because, it is us Citizens who are to repay back this amount.

  3. Frank talk

    This problem came about when privatisation mankoles left us with bad road network which resulted in to maize rotting in villages, no proper medical equipment in Hospitals and all complicated issues were referred outside our country, tourism was affected because of poor infrastructure at airports,no investment in power energy. We had fewer colleges and universities. Fewer primary and secondary schools. No health posts in rural areas. These privatisation mankoles they are bad

  4. JMS

    I’m astonished with the talk vomited by Frank talk, why does most Zambians remain in senseless behaviours well-behaved people have already said privatisation brought progress and Zambia was seen progressing due to it. Tamwakwata amano ba muntu

  5. Lovemore

    Has it already happened?
    Debt Restructuring aggrement with creditors by 2020.
    This is 30 September 2020. Where are we?

  6. Lovemore

    Has it already happened?
    Debt Restructuring aggrement with creditors by April 2020.
    This is 30 September 2020. Where are we?

Comments are closed.