Government seals debt restructuring deal with France

0
98

GOVERNMENT has signed a bilateral debt restructuring agreement with France to mark a crucial step in the country’s efforts to address its debt crisis.

https://www.facebook.com/share/p/15X3534vK4/?mibextid=oFDknk

The agreement follows President Hakainde Hichilema’s recent meeting with French President Emmanuel Macron where the two leaders reaffirmed their commitment to resolving Zambia’s financial challenges.

Finance Minister Situmbeko Musokotwane described the deal as a significant milestone, aligning with the recommendations outlined in the Memorandum of Understanding (MoU) signed in October 2023.

Dr Musokotwane said the agreement is aimed at reducing Zambia’s financial challenges, underscoring the country’s determination to rebuild the economy and restore fiscal stability through fair and effective debt management mechanisms.

“This agreement is a landmark achievement. Three years ago, Zambia was grappling with excessive debt. Today, we are making tangible progress in ensuring comprehensive debt treatment that supports our economic recovery,” he said.

The agreement with France is the first concluded under the October MoU and paves the way for finalising an additional 15 agreements with other creditor nations.

Dr Musokotwane expressed gratitude to the French government, the G20, the Paris Club, and other stakeholders for their unwavering support throughout the process.

“We are extremely proud of the progress we have made. None of this would have been possible without France’s leadership and unfailing support,” he added.

French representative William Roos noted France’s commitment to Zambia’s economic recovery stating that Zambia is the first country to benefit from France’s financial assistance under the debt restructuring framework.

“As France, we have worked under the technical guidance of the IMF and the political guidance of the World Bank president and the director general of the IMF and trusted independent partners they looked at your debt sustainability and they U.S. the magnitude of the debt treatment that we need to do,” he revealed.

By Catherine Pule

Kalemba, December 9, 2024

Advert

LEAVE A REPLY

Please enter your comment!
Please enter your name here