Zambia, Creditors Agree on Terms for Debt Restructuring

Zambia and the Steering Committee of the Ad Hoc Creditor Committee have reached an agreement in principle on the key Commercial terms of a proposed restructuring transaction relating to euro bonds due in 2022, 2024 and 2027.

The agreement with the Steering Committee brings Zambia closer to the completion of
the country’s debt restructuring, which will release significant resources for the country’s developmental agenda

The agreement also provides essential debt relief, including permanently waiving around 700 million dollars in claims and offering approximately 2.5 billion dollars in cash flow relief through reduced debt servicing payments during the IMF Programme period.

Minister of Finance and National Planning, SITUMBEKO MUSOKOTWANE says Zambia believes this agreement adheres to the comparable treatment principle and extends the foundation laid by the Memorandum of Understanding agreed with official creditors.

This is according to a statement issued to ZNBC News by Secretary to the Treasury, FELIX NKULUKUSA.

Dr MUSOKOTWANE said it also paves the way for similar restructuring agreements with other private creditors.

He said the government hopes for a swift implementation of this agreement in principle by the end of the year.

Dr MUSOKOTWANE said the Government takes pride in the progress achieved and remains committed to further reinvigorating the economy, fostering job creation, and creating opportunities for the Zambian people.

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