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China Debt relief solution to nations’ fiscal space

A Financial and Economic Expert says China’s plans to hold debt payment for African countries amid the coronavirus pandemic will help Zambia nation maintain its fiscal space.
Speaking in an interview with Money FM News, Trevor Simumba said a great portion of Chinese debt comes in as project finance and suppliers credit, making African countries more exposed to its debt.
“China’s move is in the best interest of African countries in light of the global constraint the continent is under,” he said.
Meanwhile, Mr Simumba said the decision by the International Monetary Fund (IMF) to approve debt relief for 25 Countries, of which Zambia is not included, is a clear indication of the problems surrounding the country’s domestic economy especially that it has a huge debt deficit taking up 40 per cent of the national budget.

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