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The official creditors are reported to be alleging that the deal did not deliver debt relief comparable to what they offered in a separate deal. The agreement in principle, which the International Monetary Fund (IMF) also rejected, is said to have not complied with the Comparability of Treatment
The Zambia Institute of Chartered Accountants –ZICA has expressed concern on reports that Zambia’s official creditors including China have rejected a deal the country struck with its international bondholders. www.trendsnafrica.com could not verify the veracity of the report from the government sources.
The official creditors are reported to be alleging that the deal did not deliver debt relief comparable to what they offered in a separate deal. The agreement in principle, which the International Monetary Fund (IMF) also rejected, is said to have not complied with the Comparability of Treatment.
Speaking at the ZICA fourth quarter media briefing in Lusaka, ZICA president Yande Mwenye said the implications are that the full conclusion of the debt restructuring process is likely to extend into 2024. This may adversely affect budget implementation and execution. ZICA has advised the government through the Ministry of Finance to clear the air by providing comprehensive information on the progress of the debt restructuring process to dispel speculations due to lack of information.
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ZICA has advised the Government to address Zambia’s deep-rooted structural disparity that has manifested itself in a mono-economy still heavily reliant on copper mining. It also said that the Government must expedite the diversification of the country’s export base towards sectors such as agriculture, manufacturing, and tourism as espoused in the current national development plan and other policy documents as this will ensure a multiplicity of sources of foreign currency thereby arresting [Kwacha] depreciation over time.
