Melo News | Tuesday, April 2, 2024 | Lusaka
The government has announced that the restructured debt has resulted in significant savings for the country, amounting to approximately 4.9 billion U.S Dollars this year.
This amount is nearly half of the 2024 National Budget, which totals around 7.4 billion U.S Dollars. Finance and National Planning Minister Situmbeko Musokotwane emphasized that this debt restructuring has allowed the government to reduce its debt servicing payments to less than 400 million U.S Dollars for this year.
Without this restructuring, the government would have faced difficulties in meeting its obligations, including paying civil servants’ salaries, purchasing medicines for hospitals, and investing in infrastructure. Dr. Musokotwane highlighted that the country would have been severely impacted if the debt had not been restructured.
Additionally, he revealed that Zambia has become the first country to restructure its debt under the G-20 Common Framework, with the restructured debt accounting for approximately 77 percent of the country’s total debt.
The government is now focused on concluding negotiations with other private creditors, such as Commercial Banks and contractors involved in infrastructure development. Furthermore, the Finance Minister emphasized that the government has implemented laws requiring leaders to seek authorization from Parliament before borrowing money, aiming to prevent the accumulation of unsustainable debt. While the debt restructuring is a significant step, Dr. Musokotwane acknowledged that it does not signify the end of the country’s economic challenges.
Instead, it should be viewed as an opportunity for the government to reorganize itself and continue fulfilling its responsibilities, such as recruiting teachers and nurses and providing meal allowances for students. The government is actively working to streamline bureaucracy to empower citizens and leverage the country’s resources effectively.
