Zambian govt claims 90 percent of $13.34 billion debts restructured

Finance and National Planning Minister, Situmbeko Musokotwane, has claimed that the Zambian government has restructured 90 percent of its US$13.34 billion debt.

Musokotwane said this had been done through Agreement in Principle (AIP) with its creditors out of the US$13.34 billion, indicating a significant major milestone achievement in the country’s debt restructuring efforts.

The agreements cover bilateral, Eurobond, and commercial creditor categories, with each category achieving critical advancements toward long-term debt sustainability.

An “agreement in principle” refers to a mutual understanding between parties on the fundamental terms and conditions of a deal, prior to finalising the detailed legal documentation.

In the bilateral category, Zambia secured a restructuring agreement in June 2023 for approximately US$6.3 billion, which was formalised through a Memorandum of Understanding (MoU) in October 2023.

Musokotwane said this in his ministerial statement delivered to Parliament in an update on the performance of the economy as January 31, 2025.

As at end of 2024, the Central Government Domestic Debt stock decreased to K229.3 billion from K232.6 billion as at the end December 2023 due to change in the issuance method of Government bonds in January 2024 from discount to par value.

With regard to the Central Government External Debt stock, as at end December 2024 this stood at US $15.43 billion from US $14.6 billion as at end December 2023.

“This MoU established the framework for repayment terms and bilateral agreements. So far, agreements have already been signed with France and Saudi Arabia. On the Eurobond front, Zambia restructured US$3.8 billion in June 2024, obtaining concessions worth US$840 million and resuming debt service payments,” Musokotwane said.

For the commercial creditor category, the Minister noted that Zambia had concluded agreements with Paramount, Huawei Technologies, ZTE Corporation and Credit Suisse.

“Debt service on the aforementioned creditors has resumed. Agreements in Principle (AIPs) have also been reached with other key creditors, such as Nedbank, Investec, Industrial and Commercial Bank of China (ICBC), Bank of China, AVIC, Bank Hapoalim, StarTimes and China Development Bank (CDB),” he said.

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