ZAMBIA GETS DEBT RELIEF

By BUUMBA CHIMBULU ZAMBIA has signed debt relief amounting to approximately US$822,000 with Japan under the Group of 20 (G20) Debt Service Suspension Initiative (DSSI). Japanese Ambassador to Zambia, Mizuuchi Ryuta, signed for his country while Secretary to the Treasury, Fredson Yamba signed on behalf of the Zambian Government. Under the initiative, Japan has offered debt relief in the form of deferral to be taken by the Japan International Cooperation Agency (JICA). The total amount of deferred debts would be paid in six equal semi-annual installments beginning 15th June 2022 and the rate of interest on the deferred debts will be 0.01 percent, according to Japanese Embassy First Secretary, Tomita Makoto. Mr Makoto said the debts to be deferred consisted of those payable under loan agreements concluded before 24th March 2020 between and JICA on the extension of yen loans. “This Exchange of Notes follows conclusions of consultations between representatives of the Government of the Republic of Zambia and of the Governments of the Paris Club creditor countries, which took place in Paris in August 2020,” he said in a statement. He indicated that Japan had been consistently supporting Zambia’s efforts to achieve debt sustainability in the wake of the severe impact of Covid-19 pandemic upon its economy. “The DSSI serve this goal and allow the Government of Zambia to focus its resources on priority expenses, such as fighting the pandemic and establishing value chains of local products,” Mr Makoto said.