Lusaka, Zambia, October 26, 2023 – The Government of the Republic of Zambia (the “Government”) and the Steering Committee (the “Steering Committee”) of the Ad Hoc Creditor Committee (the “Committee”), has reached agreement in principle on the key commercial terms of a proposed restructuring transaction (the “Restructuring”) relating to the Government’s bonds due 2022, 2024 and 2027 (the “Bonds”, and the holders thereof, the “Bondholders”).
Related to the development, the Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, says:
“Today’s agreement with the Steering Committee brings us closer to the completion of Zambia’s debt restructuring, which will release significant resources for our developmental agenda. The agreement to restructure the Euro bonds provides essential debt relief, including permanently waiving around $700 million in claims and offering approximately US$2.5 billion in cash flow relief through reduced debt servicing payments during the IMF Programme period.
Zambia believes this agreement adheres to the comparable treatment principle and extends the foundation laid by the Memorandum of Understanding agreed with our official creditors. It paves the way for similar restructuring agreements with our other private creditors. We hope for the swift implementation of this agreement in principle by the end of the year. We also extend our gratitude to all our creditors for the support and cooperation that has brought us to this point.
Now, it is Zambia’s responsibility to leverage this breakthrough for accelerated progress in our reform agenda and the pursuit of long-term sustainable economic growth. Our Government takes pride in the progress achieved and remains committed to further reinvigorating our economy, fostering job creation, and creating opportunities for the Zambian people.”
Further information on the agreement in principle is available in Legal Statement Click here
Issued by:
(Original Signed)
Office of the Secretary to the Treasury
MINISTRY OF FINANCE AND NATIONAL PLANNING