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Protracted debt restructuring putting pressure on Kwacha – Govt

• The uncertainty created by the protracted restructuring process has put pressure on the currency
• Delays to conclude the process are having a significant impact on the economy and livelihoods of citizens.
• Debt relief is urgently needed for Zambia to maintain its trajectory of economic recovery and growth.

Minister of Finance and National Planning has urged Zambia’s Official Creditor Committee to make progress on debt destructing as delays to conclude the process are having a significant impact on the economy and livelihoods of citizens.
In a statement, Dr. Situmbeko Musokotwane noted that the uncertainty created by the protracted debt restructuring process has put pressure on the Kwacha and made it difficult for the country to attract much-needed foreign investment.
Dr. Musokotwane stressed the need for the Official Creditor Committee to make substantial progress in their deliberations during their next meeting as this will facilitate preparation of the Memorandum of Understanding, so that Zambia may swiftly resolve its debt overhang and access the next tranche of International Monetary Fund (IMF) financing.
“The uncertainty created by the protracted restructuring process has put pressure on our currency and made it difficult to attract much-needed foreign investment, despite Zambia’s vast natural resources and improved business climate.”
“We appreciate the significant effort from all of Zambia’s creditors as we work towards an agreement on debt restructuring, and we are grateful for the ongoing productive consultations. We now appeal to our Official Creditor Committee in their next meeting to make substantial progress in their deliberations. This will facilitate preparation of the Memorandum of Understanding, so that we may swiftly resolve our debt overhang and access our next tranche of IMF financing,” Dr. Musokotwane said.
He added that Government will continue to do all it can to push for the members of the Committee to reach consensus so that the matter can be concluded.
“With support from the IMF, Zambia has played its part by making significant progress in implementing an ambitious reform agenda to stabilise our economy, increase transparency and borrowing oversight, as well as implement prudent spending reforms. Therefore, debt relief is urgently needed for Zambia to maintain its trajectory of economic recovery and growth,” he added.

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