Zambia presses on for debt repayment plan

THE debt service suspension period that the government is requesting will provide ample time for Zambia to work out a comprehensive debt servicing plan in collaboration with stakeholders and in cooperation with the IMF, Secretary to the Treasury, Fredson Yamba has said.

Mr Yamba explained that government with the assistance of financial and legal advisors, and in cooperation with the IMF, and all creditors including the noteholders and their Ad-hoc committee, would design a sustainable and equitable debt management strategy.

He also cautioned that should the noteholders refuse to provide the relief sought, the country would be unable to make payments and therefore fail to stop accumulation of arrears.

“Should Zambia fail to reach an agreement with its commercial creditors including holders of its Eurobonds on the terms of the appropriate standstills, as previously stated, the Republic with its limited fiscal space will be unable to make payments and, therefore, fail to forestall accumulating arrears,” Mr Yamba said.

“Our common objective will be to normalise our relationship with our valued financial partners as soon as circumstances allow and to orderly address Zambia’s debt challenges. We remain committed to ensuring equitable treatment of all our creditors and ensuring transparency in our engagements,” he said.

In a statement yesterday, Mr Yamba reiterated government’s strong desire and willingness to use this standstill to engage, with the assistance of its financial and legal advisors, in a collaborative and constructive dialogue with all its creditors to design a sustainable debt strategy in the weeks and months to come.