MUSOKOTWANE DEFENDS DEBT RESTRUCTURING
June 29 th 2023
LUSAKA – Minister of Finance and National Planning
Situmbeko Musokotwane says creditors would have
pounced on the country if Zambia failed to strike a deal to
restructure the $6.3 billion debt owed to governments
abroad including China.
Mr. Musokotwane said reaching an agreement on debt
restructuring with the country’s official creditors was a
significant milestone in Zambia’s journey towards
economic recovery and growth.
“We were only protected from being embarrassed by
creditors because of the UPND’s New Deal
administrations good will and commitment to reforming
the debt and the economy,” he said.
He said Zambia managed to clinch a deal with her
creditors due to the good economic policies of the UPND-
led government describing it as a milestone as it has
prevented the country from sinking into abyss of a debt
crisis.
The Minister said that for people in the opposition debt
restructuring is a bad thing because it does not give them
confidence to advance their propaganda against the
government.
And Mr. Musokotwane said that because of the
confidence the international community have on the
government, the IMF is expected to disburse US$188
million while the government is expected to execute the
Memorandum of Understanding with the Official
Creditors Committee outlaying the treatment.
And Secretary to the Treasury Felix Nkulukusa said the
agreement reached will see fast economic growth and
resolve the debt crisis and indicated that government has
demonstrated clearly that it is committed to stopping
wastefulness of resources.
He also said Government was in the process of coming up
with a Memorandum of Understanding (MoU) with the
official creditors committee which will outline the terms
of the debt treatment.
(C)The Falcon