75PC EXTERNAL DEBT RESTRUCTURED, SAYS MUSOKOTWANE
GOVERNMENT has disclosed that so far 75 percent of the external debt has been restructured. Minister of Finance and National Planning, Situmbeko Musokotwane, said the portion of external debt which is subject to restructuring comprises of the official bilateral debt which accounts to approximately 50 percent, commercial debt accounts to 50 percent and Eurobond accounts to 50 percent.
Speaking when he delivered a ministerial statement yesterday, Dr Musokotwane said therefore the agreement reached with the official creditors and bondholders’ means that 75 percent has been restructured.
He said with the development the only debt which has remained subject to restructuring is that of the commercial creditors.
“Madam Speaker you will be aware that, since the commencement of debt restructuring, government has been implementing a debt exercise, government has been complementing a debt service stand still to all creditors whose debt is being restructured.
Therefore, the implications of agreement with the bondholders and official creditors is that government will resume making debt payments of the restructured debt,” Dr Musokotwane said.
He said there is need to make funds available in the budget to ensure restructured debt is serviced when due.
Dr Musokotwane however said the debt service payment that will be made by Government will be significantly lowered than what would have been if the debt was not restructured.
He said this will free up financial resources that would be channeled to other key economic sectors.
“Government and bondholders are working across the clock to finalise documentation required to implement the agreement,” Dr Musokotwane said.