Zambia’s government has asked its external creditors to provide debt relief amounting to $8.4 billion for the period 2022-25, the International Monetary Fund said Tuesday.
The IMF program published Tuesday is the first time the fund provides details on the level of debt relief it has asked Zambia to negotiate as a precondition for a $1.3 billion bailout its board approved last week.
The IMF said “some additional debt relief” was also needed for the period 2026-31, without giving details.
Zambia’s overall public debt stood at 126% of GDP last year and was expected to decline to 104.7% by the end of 2025, the IMF said.
Please no more debt relief like in the past we have to pay our way out of debt, it no wonder lessons are not learnt…I mean the govt has removed energy and fuel subsidies to pay off debt. And that piechart needs proper explaining all I am reading is Paris Club this and that where is the Chinese debt?
@Tarino Orange
Chinese is Non-Paris club – bilateral
Tarino Orange @ 1
I totally agree with you. This is not the way to go, by the time UPND stays in power for 2 terms, the nation will be on be crippled with debt. Then again you will see arrogant and senseless people coming here at lusakatimes, hell bent to support this, all in the name of being UPND Supporters. I support UPND, but I will call them out, where we see wrong decisions. The people making these decisions will retire with good pensions. Its the poor who will suffer paying back these loans.
Some of us it’s not that we oppose IMF or World Bank loans, we oppose the way GRZ is structured and it lacks facilitation.
When I came Upon the name Fritz Haber, I said to myself when is GRZ going to sort out people like this, it can be of any race, to pay off debt, and this is part of intellectual properties.
“In order to pay Germany’s staggering World War I reparations, one of the country’s greatest scientific minds created a plan to concentrate and remove gold from seawater. Fritz Haber, a Nobel Prize winner, went from creating chemical weapons to panning for gold in the ocean.”-Keith Veronese
Debt relief has several facets, that’s why ‘Restructuring’ fits best with ‘Renegotiation’.
Do this about Zambia:
1. Negotiate for reduced interest
2. Request for longer repayment periods
3. Interests removed. Only pay principle.
4. Cancel the debt completely, as it were.
Zambia is externally indebted over $17 billion (about $7bn is China’s).
China is new to the Common Framework on debt restructuring, unlike Paris Club and G20.
@Saint: So why doesnt it say “Chinese”? and it must be in capital letters.
Zambia’s creditors are at the same time acting as IMF loan guarantors.
Imagine I go to the bank with you and vouch for you; that if you fail to pay, I will pay.
The $8, 400 million or more, (may I say, loan relief) Zambia looks for, is the reason China was dragged to G20 for a binding resolution before Zambia/IMF deal.
Question is: how, when and why the creditors are prepared to sacrifice for debtors?
Time and method must be in Lusaka at MoF.
Staff Level Agreements???
ALso, these institutoins shouldnt forgive us , as we have been forgiven twice already(During after KK and during after Chiluba) but look at where we still are? Still with a debt which is even bigger than all other debts that we were pardoned for in the past,infact even both of them combined. So, these institutions need to make us pay. We ve to pay so that also we can take responsibility next time. Please IMF/Creditors, no handouts pls!
I t is suppressing how the IMF has became so interested in zambia, ( The IMF said “some additional debt relief” was also needed for the period 2026-31, without giving details. ) so they are telling GRZ to get more debt for debt relief for 2026-31 , this is not adding up. zambia is now a darling of the west than the people zambia has huge debt with. THEY SAY FOOTBALL IS PLAYED WELL IN THE TERRACES.
It is more debt restructuring for the already accrued credit of over $17bn excluding the recent IMF loan. Zambia must talk to previous lenders for “additional debt relief” or possible right off on unsustainable loans.
Here we go again…..kikikikikiki ,,,,as if we dont have our own natural resources…..so this is thev reason why UPND is not telling Zambians the conditions….so we can’t sustain ourselves with our won revenue,,,this IMF thing will end in tears
September 7, 2022 At 1:07 pm
It is more debt restructuring for the already accrued credit of over $17bn excluding the recent IMF loan. Zambia must talk to previous lenders for “additional debt relief” or possible WRITE off on unsustainable loans.
Africans we joke too much,,,,IMF is a predator money lender, and they know how to make Africans and other poor countries suffer,,,,modern day slavery is at play….we don’t need IMF unless someone wants to pocket the money…let us just work hard as Zambians….change our work ethics…..report for work on time. Lets keep our surroundings clean…no more nichekeleko kind of behavior….but now the Muzungu has seen an opportunity to enslave us and the Lumbani Madoda praise singers are jumping up and down…Spaka is all over Lusaka Times celebrating modern day slavery
After reading some of Lee Smolin’s writing thinking about how are we going to pay Zambian debt makes one’s head spinning,
because GRZ debt restructuring is not based on physics. It cannot independently be reproduced by other nations.
The IMF is doing it because of geolocation Otherwise they would’ve brushed us off.
Not so fast it looks like this IMF thing will end in tears….dont say i didnt warn you