LUSAKA, May 7 (Xinhua) -- Zambia on Wednesday signed a bilateral agreement with the Export-Import Bank of India (Exim Bank) for the restructuring of its debt.
The agreement covers about 320 million U.S. dollars of central government debt and an additional 15 million dollars owed by Zesco Limited, the state-owned power utility.
Minister of Finance and National Planning Situmbeko Musokotwane said the signing marks a milestone in Zambia's ongoing debt restructuring efforts under the G20 Common Framework, which aims to restore debt sustainability and create fiscal space for national development.
He said that the debt has been restructured on favorable terms, as outlined in the memorandum of understanding under the G20 Common Framework.
"This agreement not only reaffirms our strong bilateral ties but also demonstrates our shared commitment to ensuring a sustainable financial future for Zambia," Musokotwane said during the signing ceremony.
He commended the Exim Bank for its continued support throughout the process, saying that the agreement reflects Zambia's success in engaging its creditors in a transparent and collaborative manner.
The signing is a vote of confidence in Zambia's economic reforms, Musokotwane said, adding that the agreed terms are designed to support the country's economic recovery, ease debt servicing pressures, and allow the government to redirect resources to priority sectors. ■
