EAZ BACKS CHINESE DEBT DEFERMENT

The Economics Association of Zambia -ECZ- says the debt deferment by the Chinese Development Bank will send a message to capital markets that the Chinese are supporting debt suspension payments owing to Covid-19 induced economic challenges.

EAZ President LUBINDA HAABAZOKA says this will also send a good message to bond holders that may have wanted the Chinese to come on board.

He told ZNBC news that this is a sign that China wants to work with Zambian authorities.

Dr. HAABAZOKA said economic development is on a win-win path and there are no enemies but rather economic partners with mutual benefits.

Government has reached an agreement with the China Development Bank -CDB- to defer debt service in respect of a commercial loan facility insured by Sinosure.

Secretary to the Treasury FREDSON YAMBA says under the terms of agreement with China Development Bank, interest and principal due on October 25, 2020 will be deferred.

Mr. YAMBA told ZNBC news in a statement last night that the deferred interest payment is now payable on April 25, 2021 and the deferred principal rescheduled over the life of the facility.

He said reaching the agreement is an important milestone for Zambia in debt relief efforts.

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