Lusaka – The World Bank said on Wednesday it was concerned at creditors’ slow pace in discussing debt restructuring with Zambia, as it released $100 million to the debt-ridden African country.
In 2020, as the Covid-19 pandemic battered Africa, Zambia became the first country on the continent to default on its foreign debt, estimated at $17.3 billion.
A year later, it sought help through a G20 mechanism for debt restructuring for poor nations, but progress has been slow.
“Zambia urgently needs debt relief to restore medium-term debt sustainability and attract the new investment needed for growth and jobs,” World Bank president David Malpass said in a statement.
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Yet, the country’s debt burden was continuing to rise, with interest arrears, late interest charges, and penalty charges accumulating, because of the delays, he said.
“I remain deeply concerned by the slow pace of the creditors’ committee and the impact of the delays on growth and poverty,” Malpass said.
In October, US Treasury Secretary Janet Yellen accused China – the main creditor to many African nations – of obstructing efforts to provide debt relief to developing nations.
On Wednesday, the World Bank said it was releasing $100 million in concessional credit to Zambia, as part of a $275-million package agreed in October to help Lusaka recover from the Covid-19 pandemic and spillover effects of the Ukraine-Russia war.
“Zambia has continued to implement agreed structural policies toward macroeconomic stability even as there are protracted delays from official bilateral creditors to discuss and finalize debt treatment,” the bank said.
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Source: AFP
Picture: Pixabay
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