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- The Chinese embassy in Zambia refused to offer any comment on the charge that they were responsible for the delay in the finalization of a US$1.4 billion credit facility (loan) that the Zambian government is pursuing with the International Monetary Fund (IMF)
The Chinese embassy in Zambia refused to offer any comment on the charge that they were responsible for the delay in the finalization of a US$1.4 billion credit facility (loan) that the Zambian government is pursuing with the International Monetary Fund (IMF).
The IMF loan which was initially planned for disbursements in the first quarter (January to March) of 2022 was rescheduled. Zambia’s finance Minister Situmbeko Musokotwane announced a revised target of conclusion to mid- year – June 2022. That date now seems to be elusive. A credit committee has to be formed to deliberate on Zambia’s debt restructuring request. This committee has not yet been formed. China, is accused of dragging its feet on the formation of the committee.
The IMF authorities maintain timing as to when the Credit facility would be concluded depends on the Zambia governments getting the refinancing assurances from its creditors (the G20 credit committee).
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The Chinese embassy is reported to have stated that they are aware of the accusations but have no comment at the moment. It also offered to give an official response after going through the papers before it. Chinese funding to Zambia is in large numbers with projects such as the Kenneth Kaunda International Airport in Lusaka, Simon Mwansa Kapwepwe International Airport on the Copperbelt, the Kafue Gorge Lower Power project etc are in different stages of implementation.
There is a requirement that Zambia engages all its key creditors including China under a common debt treatment framework to achieve debt restructuring. Zambia’s debt obligations to China is well over US$3 billion and any deal to restructure Zambia’s overall debt will have to have input from China. It is doubtful when the shadow boxing between China and its western creditors would come to a successful end soon. Until that time, Zambia may not get the funding from the multilateral lender.
