MINISTER of Finance and National Planning Situmbeko Musokotwane says the uncertainty created by the protracted restructuring process of the country’s debt has put pressure on the currency.
The Minister said the move has made it difficult to attract much-needed foreign investment, despite Zambia’s vast natural resources and improved business climate.
In a statement, Dr Musokotwane has since urged the Official Creditor Committee (OCC) to make progress on debt restructuring.
This follows ongoing engagements Zambia is having with its creditors to reach an agreement on debt restructuring.
“We appreciate the significant effort from all of Zambia’s creditors as we work towards an agreement on debt restructuring, and we are grateful for the ongoing productive consultations,” he said.
Dr Musokotwane appealed to the Official Creditor Committee in their next meeting to make substantial progress in their deliberations.
He said once deliberations are done, the move will facilitate preparation of the Memorandum of Understanding which will swiftly resolve the debt overhang and access the next tranche of IMF financing.
Dr Musokotwane reiterated that the delays to debt restructuring are having a significant impact on the economy and the livelihoods of people.
“With support from the IMF, Zambia has played its part by making significant progress in implementing an ambitious reform agenda to stabilise our economy, increase transparency and borrowing oversight, as well as implement prudent spending reforms,” he said.
Dr Musokotwane said debt relief is urgently needed for Zambia to maintain its trajectory of economic recovery and growth.
“From our side as Government, we will continue to do all we can to push for the members of the OCC to reach consensus so that we can bring this matter to a close,” he said.
