Finance Minister Highlights Debt Restructuring Milestone and Economic Priorities on Hot FM
In a recent interview on Hot FM, Finance Minister Dr. Situmbeko Musokotwane shared key insights into Zambia’s debt restructuring efforts and outlined priorities for the nation’s economic recovery.
One of the main highlights of the interview was the successful conclusion of debt restructuring with Eurobond holders, marking a significant milestone for Zambia.
Dr. Musokotwane expressed the government’s satisfaction with reaching an agreement over the country’s US$3.5 billion debt, emphasizing the complexity of the process due to Zambia’s diverse range of creditors compared to previous initiatives like the HIPC Initiative.
The Minister underscored the importance of stabilizing the economy to enable Zambia to pay more than the agreed amount in order to expedite debt dismantling once economic conditions improve.
He also addressed citizens’ expectations regarding the prices of essential commodities, noting that while some may decrease, significant drops should not be anticipated immediately.
Dr. Musokotwane highlighted the crucial role of international financial institutions like the IMF in supporting Zambia’s economic recovery, emphasizing ongoing monitoring to ensure adherence to commitments.
He also discussed ongoing negotiations with commercial banks and local service providers, indicating continued efforts to address outstanding debts.
Looking ahead, the Minister stressed the importance of increasing copper production and agricultural productivity to stimulate economic growth and enhance food security.
He emphasized the necessity for responsible borrowing practices, cautioning against expecting lenders to cancel debts in the event of default.
In conclusion, Dr. Musokotwane emphasized that the debt restructuring deal provides Zambia with an opportunity to invest in key sectors and promote economic stability.
However, he cautioned that failure to adhere to commitments could jeopardize the success of the restructuring program, underscoring the importance of prudent financial management moving forward.
