(3 minutes read)
· The new government of Zambia is making significant progress in the recovery of its economy, its credibility and its solvency,
· Zambian President Hakainde Hichilema said in his interface with the media
· Zambia has loans estimated at 12.7 billion euros. A third of the indebtedness is by way of pay out to Chinese creditors
The new government of Zambia is making significant progress in the recovery of its economy, its credibility and its solvency, Zambian President Hakainde Hichilema said in his interface with the media. Zambia has loans estimated at 12.7 billion euros. A third of the indebtedness is by way of pay out to Chinese creditors.
The Southern African country had become last year the first in Africa to have defaulted on its debt since the beginning of the Covid-19 pandemic. After 100 days in power and intense negotiations, the new Zambian president obtained a promise of 1.24 billion euros in aid from the IMF at the beginning of December.
The debt problem could have plunged the new government into crisis. But with better managerial skills, the country had managed the default quickly. The previous government’s effort to get loans from the IMF did not materialize despite trying for it for several years, the president said, adding that the credibility of the country had shored up ever since he had come to power. The country has agreed to a slew of reforms in lieu of the loan from the IMF.
