FINANCE MINISTER DEFENDS DEBT RESTRUCTURING PROGRESS
FINANCE and National Planning Minister Dr. Situmbeko Musokotwane has defended the Government’s debt restructuring efforts, rejecting claims that Zambia has been dishonest about the progress made.
Dr. Musokotwane was responding to remarks by Ms. Mulenga Kapwepwe, who questioned the Government’s assertion that 94% of eligible debt had been successfully restructured.
Ms. Kapwepwe cited a report suggesting that only 44% of debt had been covered.
“The truth is that 94% of Zambia’s eligible debt has been restructured,” Dr. Musokotwane told the media in Lusaka this afternoon.
He explained that the process began with an agreement in principle with official creditors in October 2023, which was later formalised through a Memorandum of Understanding (MoU).
“The MoU represents 94% of all debt eligible for restructuring. Creditors agreed to the financial terms collectively, and the bilateral agreements that follow are largely a legal translation of that commitment,” he stated.
Dr. Musokotwane noted that bilateral agreements have so far been concluded with India, Saudi Arabia, France, and China, covering 57% of the debt.
He added that agreements with other creditors are at various stages of domestic processing.
The minister emphasised that the focus should not be on percentages but on whether debt restructuring is delivering results.
“Without debt restructuring, the cost of external debt service for 2024 would have been US$2.6 billion for Eurobonds alone,” he said.
He also highlighted other indicators of progress under the current Government, including an average economic growth of 5% over the past four years, foreign reserves nearing US$5 billion, the reopening and expansion of major mines, free education from Grade 1 to 12, recruitment of over 40,000 teachers and thousands of health workers, and improved classroom infrastructure.
“The Government has not lied about its achievements. Today, we are resolving the debt crisis with visible and verifiable progress,” Dr. Musokotwane said.
He further urged critics to understand the debt restructuring process before commenting publicly, pointing out that accusations would have been more appropriate in 2016 when warnings of a looming debt crisis were ignored.
SE
The opposition is confusing itself. 94% of “ELIGIBLE DEBT” has been restructured. That is stark difference from 94% of the debt has been restructured.
People tend to gloss over the facts and want to create their own position other than what is being said and create and hill out of a mole.
Mulenga Kapwepwe has created her own perception of the facts and suggesting the Government is lying. Maybe ichisungu is a problem the same way she is mixing up Edgar Lungu as being Vice President and her late Father should be treated the same. Her father was a former VP and Lungu was a Former President; the two different in era, position and stature in how they are treated according to the practices. If Ms Kapwepwe cant get these to facts straight. How can anyone rely on anything that comes out of her mouth? Besides is she not some kind of actor? Lets remind her this is not a stage. She needs to get things right, or join the ranks of Emmanuel Mwamba, if acting and real life are different.