The US media quoted people familiar with the matter and revealed that Zambia has reached an agreement with Chinese and Western creditors to extend the repayment period of US $ 6.3 billion ($ 8.5 billion) loans.
The Wall Street Journal reported on Friday (June 23) that the above -mentioned persons said that according to the agreement, Zambia's 20 -year loan repayment period will have a three -year broad period before the repayment period.They said that this will be regarded as a similar reorganization negotiations with creditors in the private sector.The agreement also allows the Zambian government to obtain the second batch of funds from the International Monetary Fund (IMF), which is part of the aid plan reached in 2021.
It is reported that China has provided nearly $ 1 trillion loan to developing countries under the framework of the “Belt and Road” initiative.In the context of rising interest rates, softening of local currency, and the impact of the crown disease epidemic and the Russian and Ukraine War on the economy, many governments using Chinese funds to build highways, ports and other infrastructure are currently in difficulties in repayment of loans.
Ghana, Sri Lanka and Ethiopia have been negotiated with debt reduction and exemption with the Chinese government for billions of US dollars. IMF and the World Bank officials have previously said that they hope to reach the debt agreement reached with Zambia.Can encourage other developing countries to follow suit.
According to the data of the IMF, nearly two -thirds of the low -income countries and one -third of emerging market countries are facing high risks in debt dilemma or have already fallen into debt dilemma;The government can no longer repay the creditors.In many countries, the cost of repaying debt has continued to rise, and the ability to erode the government's ability to provide funds for important services such as health, education or power generation.
According to the IMF data, among Zambia's total foreign debt of about $ 16.76 billion, its liabilities to China are US $ 5.94 billion.
Ghana's economic scale is more than three times that of Zambia. China's proportion of China's foreign debt is much smaller. According to IMF data, in Ghana's overall foreign currency debt of $ 28.87 billion,China accounts for $ 1.9 billion.According to IMF data, Sri Lanka owed Chinese creditors $ 7.38 billion, while the overall foreign debt was about $ 41.47 billion.The Sri Lankan central bank also conducted a US $ 2.04 billion foreign currency exchange with other central banks, most of which came from the Bank of China.
Zambia and China and other government creditors reached an agreement after more than 18 months of difficult negotiations.During this period, US Treasury Minister Yellen and other leaders repeatedly accused the Chinese government of obstructing progress.The agreement will allow the IMF to pay $ 1.88 billion of Zambia's $ 1.3 billion in rescue funds, and the issuance of this funds has been put on hold from April to the present.Officials in Zambia said they hope to reach another agreement with the creditors of the private sector after reaching a bilateral debt restructuring agreement, including the holder of $ 3 billion in US dollar bonds.
In November 2020, after a few hours after the Group 20, the Group's group had just reached an agreement on the joint debt restructuring rules of the joint framework, the foreign debt defaults occurred in Zambia.About a year later, Zambia agreed to the International Monetary Fund's provision of US $ 1.3 billion for rescue.Zambia is located in southern African countries and is a large copper country.
Since then, Zambia has been negotiating with bilateral creditors to obtain debt reductions.IMF said that in order to make Zambian debt sustainable, debt deductions are essential.
