Zambia’s Treasury Secretary, Felix Nkulukusa, announced on Monday that a third party has expressed interest in taking over Zambia’s debt to the African Export-Import Bank (Afreximbank), potentially offering a resolution to a longstanding issue that has kept the country in debt default.
Nkulukusa did not disclose the identity of the third party involved. Reuters was unable to reach Afreximbank for immediate comment.
The dispute over whether Zambia is required to restructure its debt to Afreximbank has complicated and prolonged the nation’s efforts to emerge from debt default.
Nkulukusa mentioned that Afreximbank had indicated its intention to pursue arbitration over the debt but had not yet initiated formal proceedings.
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In response to the third party’s interest, Nkulukusa stated that Zambia is open to assigning the debt to the third party, provided a deed of assignment is established.
This arrangement would allow Zambia to owe the third party, facilitating debt restructuring in line with the comparability of treatment under the Official Creditor Committee framework.
According to the Overseas Development Institute (ODI), Zambia owes approximately $45 million to Afreximbank. Afreximbank has maintained that, as a multilateral lender with “preferred creditor status,” it is shielded from losses in debt restructuring.
However, sources previously informed Reuters that the Paris Club of official lenders has emphasized to Zambia and Ghana the necessity to restructure their debts to Afreximbank and the Eastern and Southern African Trade and Development Bank (TDB) on comparable terms to other creditors.
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