LUSAKA (Reuters) -China has requested an early approval of $1.4 billion extended credit facility from the International Monetary Fund for Zambia, China’s top Africa diplomat said on Friday during a meeting with Zambia’s President Hakainde Hichilema.
Wu Peng, director-general of the African Affairs Department at China’s foreign ministry said that China has made the request during the first Zambia’s meeting with official creditors on Thursday.
“China has previously supported Zambia in difficult times,” Hichilema said, adding that Zambia appreciates China’s continued support.
In 2020, Zambia became the first nation to default in the COVID-19 era. At the end of 2021, its external debt stood at $17.27 billion, of which China held $5.78 billion.
China agreed last month to co-chair Zambia’s official creditor committee with France, a move welcomed by Zambia’s government, which has made tackling the country’s debts a priority since taking power last year.
Emerging market investors and other debtor countries are closely watching Zambia’s case for signs of how lenient Beijing will be in the future with overextended borrowers.
China became over the last decade the dominant public lender to African countries, extending $160 billion in credit since 2000, according to Boston University researchers.
(Reporting by Chris MfulaWriting by Anait MiridzhanianEditing by James Macharia Chege)
