(3 minutes read)
Zambia would soon be able to access a US$ 1.3 billion IMF-support fund. The bailout was validated after getting the approval of its creditors to provide debt relief to the country, which has been caught up in a severe debt trap
Zambia would soon be able to access a US$ 1.3 billion IMF-support fund. The bailout was validated after getting the approval of its creditors to provide debt relief to the country, which has been caught up in a severe debt trap.
The committee of creditors was co-chaired by China and France. The committee announced recently that it was ready to negotiate the restructuring of Lusaka’s crushing debt load. The IMF’s support plan had been signed in December 2021. But it did not come into operation until the green light was given.
Zambia’s finance minister, Situmbeko Musokotwane, was confident of the Zambian economy getting back on the rail after being hit by severe liquidity problems with the infusion of funds from the IMF. Zambia was the first African country to default payment on its US$17.3 billion foreign debt at the beginning of the pandemic in 2020.
Read Also:
https://trendsnafrica.com/zambian-president-calls-for-italian-investment-in-ev/
In the last ten years, China has been the country’s biggest creditor. China lent an estimated US$6 billion of loans for development works including the laying of infrastructure. A financial boost will enable Zambia to pursue ambitious infrastructure projects such as roads and airports. Zambia still has to negotiate the terms of the relief and reach a similar deal with private creditors.
