DEBT RESTRUCTURING ENGAGEMENTS

The agreement reached with the Official Creditor Committee (OCC) in June, 2023, and the resulting MoU agreed in Marrakech in October, 2023, remain on course. However, it has been brought to our attention that there is speculation circulating in the public domain that the IMF has revised its position on Zambia’s debt restructuring agreement. This is factually incorrect.

To reiterate, last week, the Ministry of Finance and National Planning held discussions with the Official Creditor Committee (OCC) members and IMF representatives. During these discussions, our partners expressed reservations about the agreement-in-principle reached with the Bondholders Steering Committee in October 2023. We have re-engaged with the Ad Hoc Creditor Committee of Bondholders and are continuing discussions.

As ever, we are keeping the best interests of our country and our economy at the heart of all conversations with our partners in the debt restructuring process. It is important to note that the discussions with the Bondholders Committee occur under Non-Disclosure Agreements (NDA’s), which is a standard international legal practice for these types of discussions. This means that none of the parties, including Zambia, can disclose any specific details of these conversations, until they conclude.

In view of the foregoing, we cannot provide any further comments on the specifics of the engagements except to assure the people and friends of Zambia that we are working tirelessly to make progress towards a solution acceptable to all parties.

 

 Issued by:

 Office of the Secretary to the Treasury

 MINISTRY OF FINANCE AND NATIONAL PLANNING

 

 

Additional notes:

1. The OCC is co-chaired by China and France, and Vice-Chaired by South Africa. The other members of the OCC are Belgium, Denmark, India, Israel, Italy, Japan, the Netherlands, Russia, Saudi Arabia, Sweden, Switzerland, the United Kingdom and the United States. This is the group with which the agreement was reached in June, 2023, and the MoU agreed in October, 2023.

2. The Bondholders Committee includes asset managers (acting either directly or on behalf of funds or other accounts they manage). This is the group with whom Zambia reached an agreement-in-principle on 26 October, 2023. Note then that, it is certain aspects of the bondholder’s agreement-in-principle, that the IMF and other members of the OCC, expressed reservations about.

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