Government to start negotiations on debt restructuring

• Government will soon start the process of negotiating with its private creditors on debt restructuring.
• What government has currently agreed upon, are principles of how debt will be restructured.
• The Private creditors have expressed willingness to engage with government on the debt restructuring process.

Minister of Finance and National Planning says Government will soon start the process of negotiating with its private creditors on debt restructuring which will see Zambia receive the next tranche of US$188.8 million from International Monetary Fund (IMF).
Speaking during the Economics Association of Zambia (EAZ) Media Forum on debt restructuring, Dr. Situmbeko Musokotwane said this will be done once Government signs a Memorandum of understanding with each one of the official creditors.
Dr. Musokotwane revealed that government’s economic reform program has played a major role in sealing the debt agreement with Zambia’s official creditors.
He noted that through the program, government demonstrated to the international community that it is focused on resolving issues of wastefulness in utilization of public finances.
“The Private creditors have expressed willingness to engage with government on the debt restructuring process,” Dr. Musokotwane stated.
Meanwhile Dr. Musokotwane said government has no intention of restructuring the domestic debt.
“Following the default in 2020, the international creditors could have pounced on the country any time but could not do so because of government’s ambitious programs which included removal of fuel subsidies to channel money to important expenditures,” he said.
And Musokotwane explained that what government has currently agreed upon, are principles of how debt will be restructured and repaid and not the actual agreement which is expected to come later after engaging each official creditor on a one to one basis.
And speaking a same event, Secretary to the Treasury Felix Nkulukusa noted that the debt restructuring deal is good for Zambians as it gives stability to the economy.

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