World Bank welcomes restructuring of Zambia’s Eurobonds

By Mwila Nsofu

The World Bank has welcomed the agreement between the Zambian Government and bondholders on the terms for restructuring Eurobonds.

This follows the agreement Zambia reached in 2023 with the official bilateral creditors.

The Bank says the Official Creditor Committee has confirmed that the agreement meets comparability of treatment requirements and that the terms are consistent with the parameters of the Joint World Bank-International Monetary Fund Debt Sustainability Framework.

The World Bank says to finalise the debt restructuring process, other commercial creditors must now agree to restructure debt on terms that are comparable to those offered by bondholders and official bilateral creditors.

Zambia’s agreement on the terms of debt restructuring with Eurobond holders represents a critical milestone towards restoring debt sustainability.

The Bank says the Completion of negotiations with other commercial creditors will bring a final resolution to Zambia’s debt crisis.

It further says this will help Zambia attract new investments, accelerate growth, generate jobs, and respond to urgent priorities, such as the ongoing drought.

The World Bank is the largest provider of development financing to Zambia.

This is according to a statement released to ZNBC News by the World Bank.

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