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ZAMBIA ENHANCES TRANSPARENCY WITH CREDITORS

By BUUMBA CHIMBULU

GOVERNMENT has requested non-official creditors to form a London club for easy sharing of information.

Additionally, Zambia will soon give an update on the development of each creditor in order to enhance transparency.

Updates on what is happening with each creditor regarding debt management will be shared with creditors while part of it will be posted on the Ministry of Finance website.

This is according to the Ministry of finance Permanent Secretary for Economic Management and Finance, Mukuli Chikuba.

Mr Chikuba explained in an interview that Government was currently in its second phase of debt restructuring process which involves a financial advisor, Lazard frères.

He said the second aspect of the process involves Government applying to the common framework as well as doing a Debt Sustainability Analysis (DSA).

Zambia’s external debt currently stands at US$12.75 billion.

“We working with Lazard within this space as the legal advisor, we will be sharing more information with creditors post what we are doing now.

“But most critical as part of transparency, where we are with different creditors in terms of debt management. So the updates will be sharing, these are updates on what is happening with each creditor,” Mr Chikuba said.

Mr Chikuba indicated that the DSA once done would be subjected to creditors who would take a view on how much of relief should be given within the framework.

“The debt restructuring process was being conducted in two phases. The first phase was on debt standstill which we got from most of the official creditors some of the Chinese who are commercial and other commercials within the European and American space.

“The second aspect of it is being conducted now and it involves us applying to the common framework and us doing a DSA which we have been working on in the past few weeks and the IMF. A statement off course will come once we are done with the IMF on that end,” he said.

Mr Chikuba said Government had requested the non-official creditors to form a London club for easy sharing of non-official creditors formed a club similar to what the Eurobonds had done.

“As you know has so many creditors and sharing information individually to the creditors can be very tasking. That information will be shared as soon as they are well organised and part of it will be sharing on our website and we will let you know,” he said.

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