The Senate of Brazil has approved up to US$ 90.7 million or 80% of the US$ 113.4 million debt which Zambia owed the South American Economic Giant as at 31st July, 2011.
This is according to a message from the International Affairs Secretariat of the Brazilian Ministry of Finance delivered this morning to Zambia’s Finance Minister Felix Mutati by the Brazilian Ambassador to Zambia Anna Maria Pinto Morales.
“The Brazilian Senate has agreed that the outstanding debt of US$ 113.4 million which Zambia owed should be treated through a special bilateral arrangement whereby 80 percent will be cancelled while 20 percent should be repaid,” read the statement in part.
Commenting on the development, Mr. Mutati said the act of goodwill by the Brazilian Senate is well received by the people of Zambia as it is an affirmation of the good relations between the two countries.
“US$ 90.7 million off our external debt stock is a manifestation of a new beginning in our socio-economic relations and a huge contribution to Zambia’s economic recovery programme,” added the Minister.
And Ms. Anna Maria Pinto Morales said Brazil stands ready to strengthen cooperation with Zambia in capacity building in the agriculture sector, and the school feeding and the social cash transfer programs.
Arrangements are now underway for the two countries to sign the US$ 90.7 million debt relief pact.