Italian Government reschedules Zambia’s debt
The Italian government has rescheduled Zambia’s debt of about 94.6 Million Euros to be repaid over a period of 33 years.
Speaking during the signing ceremony, Finance and National Planning Minister Situmbeko Musokotwane described the agreement as a significant milestone in Zambia’s ongoing debt restructuring programme.
Dr Musokotwane noted that the deal was concluded under the G20 Common Framework for Debt Treatment, highlighting the importance of international cooperation in addressing Zambia’s debt challenges.
The Minister revealed that the government has resumed servicing debt on agreements that have already been finalised.
“This agreement is a clear indication that Zambia is making steady progress in resolving its debt challenges and restoring economic stability,” Dr Musokotwane said.
He said the agreement with Italy will not only reduce near-term debt service burdens but also create fiscal space for investments in infrastructure and social protection programmes.
Dr Musokotwane further urged remaining creditor countries to continue engaging with Zambia to conclude outstanding bilateral agreements and bring the debt restructuring process to completion.
And Italian Ambassador to Zambia Enrico De Agostini emphasised that Zambia’s commitment to repay its debt to Italy sends a positive signal to the international community and could improve investor confidence, which is critical for economic growth and attracting foreign direct investment.
“Perception plays a crucial role in economic development and moments like this help strengthen Zambia’s standing and create opportunities for increased investment,” he said.
The agreement restructures a loan facility originally signed in June 2018 between Zambia and Intesa Sanpaolo, the facility, which was initially set to mature in 2027, has now been extended to 2043, providing Zambia with more time to meet its obligations.
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