Zambia offers valuable lessons to countries undertaking debt restructuring —Finance Minister, Musokotwane

Finance and National Planning Minister, Situmbeko Musokotwane, says Zambia’s debt accomplishments serve as valuable lessons for countries that are already undertaking debt restructuring or intend to go on a similar path.

Musokotwane recollected that Zambia in recent months had achieved significant milestones by reaching agreements with its bilateral creditor group and bondholders.

These agreements, he explained, covered about 75 percent of the debt within the restructuring perimeter.

The Minister said this in a speech read on his behalf by Secretary to the Treasury, Felix Nkulukusa, at the World Bank Debt Management Facility Stakeholder’s Forum held in Livingstone.

“These significant milestones are the results of relentless and collective efforts of our debt management team with support of various stakeholders including Zambia’s creditors, the International Monetary Fund (IMF), World Bank and our financial and legal advisors.

“These achievements are crucial for Zambia and also serve as valuable lessons for countries that are already undertaking debt restructuring or intend to go on a similar path,” Musokotwane said.

He noted that this long restructuring process had provided government with an opportunity to re-evaluate our debt management framework, emphasising improved transparency, accountability and sustainability.

“As a nation, we remain committed to ensuring that our debt management strategies support our national development priorities, promote economic growth, create jobs, and reduce poverty.

“Concurrently, we are implementing fiscal reforms to maintain control over our debt. Our homegrown economic reform programme, monitored by the IMF, has successfully passed each review, underscoring our determination to restore fiscal and debt sustainability,” Musokotwane said.

During this forum, government presented reforms which were being implemented to its debt management practices and regulatory frameworks, to align them with international best practices in order to avoid similar pitfalls in the future.

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