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Bank of Zambia (BoZ) governor, Danny Kalyalya, says the debt restructuring will have far reaching positive implications on the Zambian economy.
Kalyalya said during the ongoing International Trade Fair in Ndola on Friday. He pleaded that stakeholders should stop doubting the impact of the debt restructuring exercise on the economy.
“People are underestimating the impact debt restructuring will have on the economy and some are saying we were completely not servicing debt but to the contrary we were servicing debt from multilateral institutions to financial institutions,” he said.
Kalyalya said the Central Bank was hoping that the import cover would be boosted to five months of import cover in the short term and jump to six months of import cover in line with the regional requirements of six months reserves.
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“With the debt restructuring, we are hoping that soon we will move to five months of import cover and eventually reach the six months sealing in line with the Southern Africa Development Community (SADC ) among other regional bodies which puts six months as minimum, ” Kalyalya said.
He also said the government would be making a huge saving from the debt rescheduling as the country would be paying only US$750 million instead of US$6.3 billion in debt servicing in 10 years.
Kalyalya was accompanied on the tour by central bank’s high-ranking team which included deputy governor economics Francis Chipimo.
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