World Bank Applauds Zambia’s Debt Restructuring Agreement with Bondholders
The World Bank has lauded the recent agreement between the Zambian Government and bondholders regarding the terms for restructuring Eurobonds, marking a significant step forward in the country’s debt restructuring efforts.
This agreement builds upon Zambia’s previous deal with official bilateral creditors in 2023. The Official Creditor Committee has affirmed that the terms meet comparability of treatment requirements and align with the parameters of the Joint World Bank-International Monetary Fund Debt Sustainability Framework.
To finalize the debt restructuring process, the World Bank emphasizes the importance of other commercial creditors agreeing to comparable terms. Zambia’s agreement with Eurobond holders is deemed pivotal in restoring debt sustainability.
Completion of negotiations with all commercial creditors is crucial for resolving Zambia’s debt crisis, enabling the country to attract new investments, spur economic growth, create employment opportunities, and address pressing challenges like the ongoing drought.
As the largest provider of development financing to Zambia, the World Bank remains committed to supporting the country’s efforts to achieve sustainable economic recovery and development.
SOURCE:znbc
