LUSAKA (Reuters) – Zambia has not yet started negotiations with its creditors but is preparing for the first meeting, Finance Minister Situmbeko Musokotwane said on Monday at a public meeting to discuss the country’s annual budget.
The southern African nation became the continent’s first pandemic-era sovereign default nearly two years ago and according to the International Monetary Fund, is seeking $8.4 billion of debt relief from 2022 to 2025.
“Have we started negotiations with creditors? Not yet but right now we have preparations for the first meeting,” Musokotwane said in response to a question.
He did not give a timeline when asked how confident he was that a memorandum of understanding would be signed with creditors by the end of this year or the first quarter of next year.
Zambia’s external public debt reached $14.87 billion at the end of June 2022, Musokotwane said at a budget speech last week. Zambia’s creditors include Chinese lenders and bondholders.
(Reporting by Chris Mfula; Writing by Bhargav Acharya; Editing by James Macharia Chege)
