Zambia has been granted a Debt Service Suspension Initiative (DSSI) by the Chinese Government and all concessional facilities as provided by the G20 Guidelines.
Zambia has also been given a one-year grace period and suspension of three years of repayment.
China has suspended the maximum debt service repayment for 2020 and rescheduled it amounting to $225million which was due between May 2020 to December 2020.
Debt suspension for 2021 and 2021 amounting to $426.3million and $428 million have been suspended and rescheduled.
The main Chinese creditors include Export-Import Bank of China, China Development Bank, the Industrial and Commercial Bank of China among others for loans obtained under infrastructure funding.
This information was disclosed in response to Euro Bond holders and investors prepared by Ministry of Finance and Lazard Freres who government has hired to help with financial and debt advisory services.
The document has since been posted on the London Stock Exchange.
According to the document, the Government had submitted a bilateral request to the Chinese government for debt service suspension on Government to Government (G2G) facilities.
“The Chinese Government has since agreed to grant DSSI for all to G2G facilities and all concessional facilities as per G20 guidelines of one-year grace period and three years repayment”.
The Zambian government is also engaging Chinese commercial facilities.
It has since engaged Sinosure an insurance firm that has insured commercial loans.
These talks are underway on the possible deferment of interest repayments.
The document stated that engagements on debt service related to China have been successful.
Earlier this year, Government proactively engaged the Chinese Government and creditors to obtain the Debt Service Suspension Initiative.
This is a case of someone running from a snake, sees a lion with a wide open mouth and jumps into its mouth to hide from the snake. This is all it takes to create a Chinese province in Africa. I cry for my beloved country
ECL and the PF have really put the Zambia in debt trouble.
All this money will still have to be paid by our children and grandchildren in future.
ECL and the PF have really put Zambia in debt trouble.
All this money will still have to be paid by our children and grandchildren in future.
Thank you China.
The colonial masters refused to suspend Eurobond. The slave traders also refused to let IMF help these PF thieves. But China you have come to their rescue. Please China accept a shipment of dogs and amafolo snakes. We have dogs in streets everywhere, and our men in uniform are good at catching snakes for our humble leader to snack.
So this will be counted as positive development; our children and theirs will be the ones to pay the debt.
Every country is reviewing the debt management plan. Zambia included. China has been an all weather friend and hence this relief. Good news.
PF, fooolishly delaying the inevitable.
Let’s just drop two more Zeros from our currency to reset our Economy. Our K100 can’t even buy Tissue paper!
A problem has been postponed so that they raise funds for election campaigns. Whoever will take over from PF will inherit the biggest financial burden this country has ever seen
I’m glad to know China has gone to such length to suspend our debts. However, just remember, there’s nothing for free in this world.
Nothing for free, never trust a Chinaman , these are the people who released covid19 to bring the world to it’s knees
These loan deals have strings (steel cables) attached.
Seasoned partners. Twalumba.
There is no problem solved here but delayment. We should have asked China for debt relief which I’m pretty sure won’t agree not even cent can China condone.
The PF has brought mathata in Zambia.
PF must go!
Lungu has borrowed excessively and shrunk Zambia’s GDP performance leading to a great credit squeeze,ECL has been very mediocre economy-wise to the point of asking for debt relief due to mismanagement.
Good and responsible move from China. It’s no secret that China has benefitted from our resources more than we have, and while their economy has gone back full throttle, ours is still facing turbulences. So it is only fair for the stronger partner to strive for an optimal, win-win situation in all aspects of our relations.
So shameful to be in this situation. We could have avoided this, but awe ati sonta epo wabomba,kanshi ninkongole mama foreign reserves balebomfya!!!! They thought the previous Presidents were silly to keep savings
Relief from May 2020 to December 2020 after next month – so, money will fall from shopping malls to pay Chinese in December2020 – kikikikikikikiki
Too bad for the incoming government, PF has sold this country, fong kongs will deplete all our resources because of the debt trap…..mwatiletelela ba mambala imwe.
Well by the time the amount will be due for payment pray that the kwacha wouldn’t have depreciatiated further.
So what happens to the ‘money’ that doesn’t have to be paid now? Your guess is as good as mine. Then money still has to be found after the ‘Grace’ period. Until you actually make enough of your own money, this move is nothing to celebrate about. It’s perpetual bondage
Long live the republic of Chambia! One Chambia! One Nation! One Nation! One Leader! And that leader?? Dr Xi uwamuyayaya! uwamuyayaya!
Since the bondholders rejected an extension. This money will now go to them.
It’s Common knowledge after the global recession emanating from the Corona virus we expect the Kwacha to rebound in 3 years time
Nchima, since when did the kwacha rebound under so much debt in the history of this country ?
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