ON MONDAY evening, President Hakainde Hichilema was bubbling with glee in that his New Dawn administration had scored another first.
The head of State was blissful because in a monumental milestone, Zambia had under his stewardship reached a debtrestructuring agreement with bondholders of US$3.5 billion.
With this historical deal, as President Hichilema aptly put it when he broke the good news, Zambia’s economic reclamation is assuredly back on the right trajectory.
“It’s done. Debt deal done with Eurobond holders of over US$3.5 billion. What a journey and thank you, Zambians, for your patience and unwavering support during this process that has taken long to conclude,” he stated in an online post.
Disgracefully, while the President was announcing the gigantic step towards Zambia’s economic rejuvenation, the usual Patriotic Front (PF) critics took to social media pouring scorn on the practical capacity of the deal to succeed.
We found this conduct awful in that these are the very people who left this country’s economy in ruins because of their insatiable appetite to borrow for consumption and pilfering.
President Hichilema and his team should not be unfocussed by these worrywarts because they thrive on spreading untruths to the same people who rejected them in 2021 and, as such, can never ever entrust them with authority over the affairs of Zambia.
As Minister of Finance and National Planning Situmbeko Musokotwane fittingly stated yesterday when he featured on a Hot FM radio programme, clinching the debt-restructuring deal is a landmark for Zambia.
This is because unlike the Heavily Indebted Poor Countries (HIPC) Initiative when Zambia only owed few creditors, the latest deal was very intricate.
Those owed under HIPIC were only World Bank, International Monetary Fund and bilateral countries, making it easy for creditors to provide debt relief for Zambia.
But the latest deal was complex in that due to their unquenchable craving, those in the PF regime borrowed from everywhere–multilateral creditors, bilateral creditors, private creditors, global financial institutions, including local commercial banks.
Indeed, the debt-restructuring journey has been long and meandering because Zambia owes many different categories of private creditors, which called for the need to collectively negotiate interest rates, a daunting task for Government.
Now that the deal has been sealed, Zambians can proudly look forward to a blossoming future, especially in view of the fiscal discipline the current administration has exhibited since getting into government.
With this deal, the colossal sums of money that used to go to debt servicing will now be invested in different sectors of the economy such that by the time we start settling the debt, Zambia will have made tremendous progress economically.
Debt restructuring is of paramount significance because it plays a crucial role for countries facing financial challenges.
It provides an alternative to bankruptcy when a debtor, whether it is a company, individual, or even a nation, is in financial turmoil like the case is with Zambia.
By renegotiating terms, such as lowering interest rates or extending repayment deadlines, debt restructuring helps prevent default on existing debts.
Surely, Government must be extolled for this breakthrough. We urge all well-meaning Zambians to rally behind President Hichilema as he continues steering the country to economic affluence.
Debt restructuring: Bravo New Dawn!
ON MONDAY evening, President Hakainde Hichilema was bubbling with glee in that his New Dawn administration had scored another first.
The head of State was blissful because in a monumental milestone, Zambia had under his stewardship reached a debtrestructuring agreement with bondholders of US$3.5 billion.
With this historical deal, as President Hichilema aptly put it when he broke the good news, Zambia’s economic reclamation is assuredly back on the right trajectory.
“It’s done. Debt deal done with Eurobond holders of over US$3.5 billion. What a journey and thank you, Zambians, for your patience and unwavering support during this process that has taken long to conclude,” he stated in an online post.
Disgracefully, while the President was announcing the gigantic step towards Zambia’s economic rejuvenation, the usual Patriotic Front (PF) critics took to social media pouring scorn on the practical capacity of the deal to succeed.
We found this conduct awful in that these are the very people who left this country’s economy in ruins because of their insatiable appetite to borrow for consumption and pilfering.
President Hichilema and his team should not be unfocussed by these worrywarts because they thrive on spreading untruths to the same people who rejected them in 2021 and, as such, can never ever entrust them with authority over the affairs of Zambia.
As Minister of Finance and National Planning Situmbeko Musokotwane fittingly stated yesterday when he featured on a Hot FM radio programme, clinching the debt-restructuring deal is a landmark for Zambia.
This is because unlike the Heavily Indebted Poor Countries (HIPC) Initiative when Zambia only owed few creditors, the latest deal was very intricate.
Those owed under HIPIC were only World Bank, International Monetary Fund and bilateral countries, making it easy for creditors to provide debt relief for Zambia.
But the latest deal was complex in that due to their unquenchable craving, those in the PF regime borrowed from everywhere–multilateral creditors, bilateral creditors, private creditors, global financial institutions, including local commercial banks.
Indeed, the debt-restructuring journey has been long and meandering because Zambia owes many different categories of private creditors, which called for the need to collectively negotiate interest rates, a daunting task for Government.
Now that the deal has been sealed, Zambians can proudly look forward to a blossoming future, especially in view of the fiscal discipline the current administration has exhibited since getting into government.
With this deal, the colossal sums of money that used to go to debt servicing will now be invested in different sectors of the economy such that by the time we start settling the debt, Zambia will have made tremendous progress economically.
Debt restructuring is of paramount significance because it plays a crucial role for countries facing financial challenges.
It provides an alternative to bankruptcy when a debtor, whether it is a company, individual, or even a nation, is in financial turmoil like the case is with Zambia.
By renegotiating terms, such as lowering interest rates or extending repayment deadlines, debt restructuring helps prevent default on existing debts.
Surely, Government must be extolled for this breakthrough. We urge all well-meaning Zambians to rally behind President Hichilema as he continues steering the country to economic affluence.