Ministry of Finance Permanent Secretary, Mr. Mukuli Chikuba has emphasized that Zambia has not defaulted to any of its creditors on its foreign debt.
Speaking in interview Mr. Chikuba said the action taken by government to seek a six months debt repayment suspension was to promote transparency and understanding among EuroBond holders.
“We have paid the debt service repayment due to the EuroBond.”
He said”Our debt repayment service to the $750million Eurobond was bond two days ago.” He said.
He said Zambia like many other countries, have been impacted economically negatively by the pandemic.
“We have been impacted negatively by the Covid-19 pandemic.” He said.
In April,2020, the World Bank’s Development Committee and the G20 Finance Ministers, endorsed the Debt Service Suspension Initiative (DSSI) in response to a call by the World Bank and the IMF to grant debt-service suspension to the poorest countries to help them manage the severe impact of the COVID-19.
Mr. Chikuba said to this effect, Zambia has applied for the Deby Service Suspension Initiative (DSSI) to the Paris Club to address the challenges that has come with the Covid-19 pandemic.
He said the action done by government was to encourage transparency and has taken the initiative to commercial creditors too.
He said government has reached out to the banks and commercial creditors such as the EuroBond holders, to agree on the debt repayment service schedule and seek a six months suspension.
He said after the Notice was deposited on Tuesday, the process will begin on 29th October 2020 to obtain consesus from the EuroBond holders so as to achieve a collaborative agreement on the debt service schedule.