Monday, June 17, 2024

President Hichilema Confident of Debt Restructuring Deal as Talks Begin in Paris

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President Hakainde Hichilema has arrived safely in Paris for the Summit for a New Global Financing Pact, where discussions on the debt restructuring deal are set to take place. Alongside other world leaders, President Hichilema will engage in deliberations on various issues, with a primary focus on “Building a new consensus for a more inclusive international financial system.”

President Hichilema expressed confidence that his government will secure a debt restructuring plan during talks with official creditors in Paris this week. Zambia became the first African nation to default on its foreign debt in 2020, with the outstanding amount officially standing at $18.6 billion since the onset of the Covid-19 pandemic.

Seeking assistance to restructure its debt, Zambia turned to the G20 mechanism, co-chaired by Paris and Beijing. However, the implementation of the plan has faced delays. President Hichilema announced during a press conference in the Rwandan capital, Kigali, that an agreement was anticipated.

“The framework that we should agree on in the next few days, and the presence of other leaders, show our urgency to conclude,” President Hichilema stated. He expressed the desire to conclude Zambia’s debt restructuring and emphasized that the process has been ongoing for too long. Describing the debt as a burden akin to a “python crippling us in the neck, the ribs, and the legs,” Hichilema emphasized the pressing need for resolution.

The international community has closely monitored Zambia’s debt restructuring journey. The United States has been actively engaged in the process, urging China, Zambia’s largest creditor, to facilitate a swift resolution. The progress made so far has been encouraging, with the US Treasury expressing hope for an agreement on official bilateral creditors in the near future.

Negotiations on debt restructuring, a crucial step toward unlocking the IMF’s aid plan for Zambia, have been underway for two years. The Paris Club, an informal group of official creditors responsible for finding solutions for countries struggling with debt repayment, began its meetings on Wednesday, preceding the summit in Paris, which aims to devise strategies for reforming global financing in the face of climate change.

President Hichilema expressed hope that his presence in France, alongside French President Emmanuel Macron and Chinese Premier Li Qiang, would expedite the process. He emphasized the need for unity among the three leaders, suggesting that an imminent announcement of a debt restructuring deal is on the horizon.

Zambia’s successful debt restructuring could serve as a model for other countries facing similar challenges. President Hichilema believes that if an agreement is reached, the G20’s Common Framework for debt restructuring, involving traditional lenders from the Paris Club as well as new lenders like China and bondholders, can be expanded to assist other nations in addressing their debt burdens.

21 COMMENTS

  1. Mambala will come back from France only to make another trip to Germany next week.

    Let him stay in a hotel in Europe, do all his trips then akabwele kunkazikika pa Zambia.

    He is selling this country faster than we thought he would. He is deep in debt after numerous elections losses that were funded by gay mafias. Now he will sell our economic freedom to repay what he owes

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    • In the computer age you dont need to hop on to a plane every second day. Apart from depleting your miserable country’s resources, you are increasing your carbon footprint! Have you bloggers checked the weather today? We have experienced the earth’s hottest day in China. And the other way round in Australia.
      You can go to Paris virtually! The things HH missed as he grew up are coming to haunt our paltry treasury at BOZ. Our weather too

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  2. FIXING PF reckless spending
    At last accountability and acknowledgement
    All previous regimes kept crying for Debt right off
    Do we Africans think the world owes us a living

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    • You are right, all previous regimes kept crying for “right off” so that we could have right to decide our destiny. Unlike under upnd where you are crying and begging for “write off”. Ulichik0p0

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  3. Africa will remain poor for as long as we continue electing western puppet leaders…we don’t need IMF but we can easily grow our economy using our own natural resources….WAKE UP AFRICA

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  4. From Zambia Observer, I have seen the allowances Mrs Lungu was getting whenever she travelled. So these dudes can live a very comfortable life just from allowances! No wonder HH -Chiluba too-could afford not getting their salaries. When I grow up I want to be a politician.

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  5. Ukrainian President Zelensky’s adviser, Mikhail Podolysk, accused African Presidents that were recently on a peace mission to Kiev and Moscow of playing a ‘primitive information game’ and that they lacked the capacity to resolve the conflict as it was above their level and competence. Mwaumfwa imwe ba parise-singer how African Presidents have been insulted by the Ukrainian neo-Nazis? I hope you can now wise up!

  6. Same as Zambian ladies believe that having a blesser or several of them in lifetime is their birth right, Zambia believes that it deserves endless blessers who must be pouring money in this bottomless pit and then write off any debt. Have an honor, dignity, self respect and pay your obligations in full.

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  7. What is Kaseba still doing in Paris, is She not supposed to be in Embassy’s park cleaning her tribally bigoted husband’s grave!

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  8. @Tikki and Spaka…am investing in Zambia am not just here on LT kusabaila…..i seriously want the Zambian economy to grow but not cutting corners and applying band aid….this is what HH and his minions are doing….they don’t care anyway and i think now they’re busy buying properties overseas….once out of office they will easily relocate to Western world and by then the Zambian economy will be worse than Zimbabwe

  9. Christine Kaseba-Sata no shame at all ..she must be enjoying life in Paris shopping. Your late husbands Party that maximised your wealth is rotting and you are in Paris playing ambassdor.

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  10. Like I said at the start of the week that Hakainde should have gone to China and lobbyed them after he finished his pointless trip to Russia. He is confident because he has shined a lot of boots.

  11. This character called HH with demagogue character has really disappointed me. He has caused poverty on the Copperbelt by enriching himself with so-called nationalization policy which a gouvernement of thieves had introduced. Just a few months ago he got summoned by the Americans together with another puppet from Congo, to surrender strategic minerals of cobalt which are essential in making batteries. None of the so called investors are paying any tax in Zambia. Why in Gods name? If he is really for investments and development of the country, is it difficult for ourself to manufacture batteries for electric cars and export them. He is the most traveling and overseas touring leader on earth. But at the expense of poor Zambians. Shame to him. Shame to his corrupt YES SIR henchmen.

  12. This platform stinks of PF thugs who have no shame of the pit latrine they threw this country under. They even have the audacity of opening up their traps talking nonsense.
    Well be rest assured that HH is back in 2026. We will not be letting back you pack of thieves to come & steal again after this long struggle HH’s govt has fought in getting a debt reprieve. What a bunch of shameless sakalanyongos!!!

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  13. Father Moto moto all the way from EUROPE fouñd abundant resources in our country, he worked with his hands with our resources. From them he blessed our couñtry both physically and spiritually.

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