The Zambian government said on Thursday that it will commence negotiations with its creditors later this month on how its debt could be restructured.
Situmbeko Musokotwane, the Minister of Finance and National Planning said the country’s current economic situation was not good because of excessive debt, adding that the government had no option but to seek an agreement with the International Monetary Fund (IMF) for a financial package.
In remarks delivered when he met a delegation of lawmakers from Tanzania, the minister said the decision to have an agreement with the IMF was meant to act as a facilitator between the southern African nation and its creditors.
In December last year, the southern African nation reached a 1.4 billion U.S. dollars three-year staff-level agreement with the international lender under the Extended Credit Facility.
Last month, the finance minister said that the government expects to strike a debt restructuring deal with its creditors by April this year and get a formal agreement with the IMF signed off in May.
In 2020, Africa’s second-largest copper producer became the first pandemic-era sovereign default.
Zambia’s external debt currently stands at 14.5 billion U.S. dollars. Enditem
