CSO-DEBT ALLIANCE CONCERNED OVER ZAMBIA’S DELAYED DEBT RESTRUCTURING
By Tellah Hazinji
The Civil Society Organizations-CSO- Debt Alliance has expressed concern over Zambia’s dragging debt restructuring as the year comes to a close.
According To Reuters, Zambia’s official creditors including China rejected a deal the country struck with its international bondholders because they believed its “base case” scenario did not deliver debt relief comparable to what they offered in a separate deal.
Alliance National Coordinator Peter Mumba says the delay is concerning because the expectation of many Zambians was that the kind of relief offered by the bilateral creditors should almost be equivalent to the relief offered by the private creditors but that the bilateral creditors offered way more relief hence the complexity.
Mr. Mumba says this complexity has slowed down the country’s debt restructuring as there is currently nothing substantial to point to in terms of having a restructured debt besides the memoranda of understanding and the principal agreement.
He has told Phoenix News that there is a need for the negotiations to go back to the drawing board in order to iron out these issues that are delaying the country’s progress.