China’s Export Import Bank of China (EXIM CHINA) has announced that it is suspending Zambia’s interest and principal payments on sovereign loans totaling $110 million due between 1st May and 31st December 2020.
Secretary to the Treasury Fredson Yamba has announced in a statement issued this evening.
Below is the full statement:
The Government of the Republic of Zambia (the “Government”) is pleased to announce that the Export Import Bank of China (“Exim China”) has advised that it is suspending, within the framework of the G20 Debt Service Suspension Initiative (DSSI), the payment of all interest and principal on sovereign loans amounting to US $110 million due between 1st May and 31st
The move is aimed at helping Zambia ease the debt and liquidity pressures as Zambia mobilizes the necessary resources to fight the COVID-19 pandemic.
Reaching this agreement is an important milestone for Zambia as it undertakes steps to ensure broad based debt relief and equal treatment of creditors in its debt relief efforts.
Government is thankful to the Authorities in China for this debt service suspension and for the friendly relations that exist between the two countries.
This is the second creditor from China to provide relief to the country following a similar gesture by the China Development Bank.
While this this is bilateral debt, we will continue to engage private Chinese lenders based on friendly consultations.
As earlier indicated Government will be transparent in the process of debt relief and will continue to work with all our creditors to reach similar interim agreements around the
deferral of both principal and interest payments.
Such interim debt service deferment agreements will also provide the Government with the necessary time to complete its overall debt strategy aimed at restoring public debt
Fredson K. Yamba
Secretary to the Treasury