ZiCA upbeat about Zambia’s prospects following debt restructuring deal

Zambia is poised to be in a stronger position to support its economic growth as it is now credit worthy and a more attractive destination for Foreign Direct Investment (FDI).

This is according to the Zambia Institute of Chartered Accountants (ZICA) in their comment on the recent debt deal the country clinched with its Official Creditors on Thursday.

The debt deal Zambia clinched on Thursday last week is for public sector debt amounting to US$6.3 billion.

Cecilia Zimba, ZiCA president, said the accountants were confident that the country’s debt restructuring would release and relieve funds that were urgently needed for national development.

The accountants were now looking forward to the 360 degrees turnaround of prospects for Zambia as debt repayment has been a big burden with respect to the economic growth.

ZiCA is also confident that a similar deal would be struck with private sector creditors.

“The debt- restructuring programme that involved negotiations with its creditors to restructure its debt obligations and reduce its debt burden could not have been managed better, and what we are celebrating today, is testimony of the work that went into this.

“The importance of the successful agreement that would enable the country to reduce its debt burden while still meeting its financial obligations cannot be overemphasised,” Zimba said.

She indicated that the debt restructuring meant that the country would pay debt over a longer maturity period and at more affordable interest rates.

“From this milestone, more resources will now be channeled towards critical sectors such as healthcare, education, infrastructure and general strides to improve the living standards of the citizens.

“It is common knowledge that our debt-to-GDP ratio has reached unacceptable levels and at default, support from lenders stops coming because a country becomes high risk,” Zimba said.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.