Zambia Signs $335m Debt Restructuring Deal with India’s Exim Bank

The government has signed a bilateral agreement with EXIM Bank of India to restructure $335 million of Zambia’s debt.

Finance and National Planning Minister Dr Situmbeko Musokotwane said the deal covered $320 million owed by the central government and $15 million by ZESCO.

“The signing of this bilateral agreement to structure the debt between the government of Zambia and the Export-Import Bank of India marks a significant milestone in Zambia’s ongoing debt restructuring efforts under the G20 common framework approach,” Musokotwane told reporters after the signing of the agreements.

The restructuring is set to reduce interest rates and give Zambia a longer period of repayment, easing the debt burden. “Going forward, we will be able to service our debt without choking ourselves,” the finance minister continued.

Crucially, the government will be able to continue delivering on its free social service commitments, including education and medical services. The restructuring will also improve Zambia’s investment appeal, as the label of ‘defaulter’ disappears.

EXIM Bank Resident Representative Shyamasish Acharya disclosed that EXIM Bank had extended Zambia’s loan tenure up to 2043, adding that “this will be helpful to the people of Zambia.”