ZAMBIA GETS MORE CHINESE DEBT RELIEF

By BUUMBA CHIMBULUTHE China Development Bank (CDB) has deferred Zambia’s interest payment which was due on October 25, this year to April 25, next year.The deferred interest payment is now payable on April 25, 2021 and the deferred principal rescheduled over the life of the facility.Government external debt service on Chinese loans amounts to approximately US$426.3 million in 2020 and US$428 million in 2021.Secretary to the Treasury, Fredson Yamba, said Government had reached an agreement with the CDB to defer debt service in respect of a commercial loan facility insured by Sinosure.Main Chinese creditors include the Export Import Bank of China, CDB, the Industrial and Commercial Bank of China and a few other commercial entities including the Bank of China.Mr Yamba said such interim debt service deferment would provide the government with the necessary time to focus efforts on completing its overall debt strategy aimed at restoring public debt sustainability.He said in a statement that reaching this agreement was an important milestone for Zambia in debt relief efforts.He explained that this was made possible by CDB’s and Sinosure’s collaborative and cooperative approach.“Under the terms of our agreement with CDB, interest and principal due on 25th October 2020 will be deferred, Mr Yamba said.