(3 minutes read)
· Zambian government will soon conclude discussions with creditors on debt restructuring, as a part of country’s effort to access a US$1.4 billion from International Monetary Fund (IMF) as a bailout package by June this year.
· Indicating this, Zambia’s Minister of Finance and National Planning Situmbeko Musokotwane said the Government was on the right path to restructure Zambia’s debt following a successful agreement with the IMF last year.
The Zambian government will soon conclude discussions with creditors on debt restructuring, as a part of the country’s effort to access a US$1.4 billion from the International Monetary Fund (IMF) as a bailout package by June this year.
Indicating this, Zambia’s Minister of Finance and National Planning Situmbeko Musokotwane said the Government was on the right path to restructure Zambia’s debt following a successful agreement with the IMF last year.
He was speaking recently with other ministers and representatives of Bankers Association of Zambia (BAZ). The minister said Zambia’s debt has been unsustainable for many years. Hence, the Government is working on addressing the problem.
The minister underscored the need for achieving economic stability to rein in inflation and kick-start the growth process. A stable and sustainable growth will ensure better foreign exchange flows.
It may be noted that Zambia defaulted on its debt repayment during the earlier regime, which was highlighted both in the domestic and international press and also acted as a drag on the credit worthiness of the country. The minister said that once the debt restructuring was done, the country would allocate resources for repaying some of the debts. This would be done in this year itself. The IMF and the World Bank are expected to make disbursements payable over a long period of time with interest almost at zero.
