BREAKING
Government of the Republic of Zambia Reaches Agreement on Debt Restructuring Terms with the Steering Committee of the Ad Hoc Creditor Committee of holders of Zambia’s Eurobonds
The Government of the Republic of Zambia (the “Government”) and the Steering Committee (the “Steering Committee”) of the Ad Hoc Creditor Committee (the “Committee”), have reached agreement in principle on the key commercial terms of a proposed restructuring transaction (the “Restructuring”) relating to the Government’s bonds due 2022, 2024 and 2027 (the “Bonds”, and the holders thereof, the “Bondholders”).
Related to this development, the Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, says:
“Today’s agreement with the Steering Committee brings us closer to the completion of Zambia’s debt restructuring, edging us nearer to unlocking substantial resources vital for our developmental aspirations. The agreement to restructure the Eurobonds provides essential debt relief provided by the Bondholders, including foregoing around $840 million in claims and offering approximately US$2.5 billion in cash flow relief through reduced debt servicing payments during the IMF Programme period.
The Government have received confirmation that the agreed terms are compatible with both the Official Creditor Committee’s assessment of comparability of treatment and the the IMF’s program parameters under the Second Review framework. This sets the stage for us to advance and conclude restructuring agreements with our other private creditors. We further extend our gratitude to all our creditors for the support and cooperation that has enabled us to reach this point.
Together, we are embarking on a significant stride toward resolving our debt challenges, laying the groundwork for a brighter and more prosperous future for Zambia and its people.”
Commenting on this development, Zambia’s President had this to say on his @facebook
“Fellow citizens. It’s done. Debt deal done with Eurobond holders of over $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.
Now that this is done, our economic recovery is back on track.
Phew!
Signed: Hakainde Hichilema
President of the Republic of Zambia
Source: @mofnpzambia@HHichilema
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