Zambia Finds $2 Bn More Debt On Books, With China Major Creditor
Mohammad Ali (@ChaudhryMAli88) Published October 08, 2021 | 08:30 AM
Lusaka, Oct 8 (UrduPoint / Pakistan Point News - 8th Oct, 2021 ) :Zambia's newly elected government on Thursday said it owed $2 billion more to foreign creditors than previously thought, with more than $6 billion owed to China alone.
The resource-rich but impoverished African nation said external debt stood at $14.48 billion at the middle of the year -- more than 60 percent of gross domestic product.
Debt had ballooned under the government of Edgar Lungu, who was toppled in August elections by veteran opposition leader Hakainde Hichilema.
Hichilema is in talks for a bailout from the International Monetary Fund after Zambia became the first African nation to default on its debt during the coronavirus epidemic.
Of the total debt, Zambia owes China $5.75 billion -- or $6.18 billion including unpaid interest, Finance Minister Situmbeko Musokotwane told parliament.
"The stock of public and publicly guaranteed external debt at the end of the second quarter stood at $14.48 billion excluding interest arrears," he said.
Lungu was accused of borrowing heavily to splash out on infrastructure projects during his six- year tenure.
Despite vast reserves of copper and other minerals, Zambia's economy contracted in 2020 -- the first recession sincew 1998 -- and inflation remains in double digits.
Hichilema campaigned on a pledge to improve governance and restore an economy that over years of rapid growth transformed the nation into a middle-income country.
The government held talks with the IMF from September 27 to 1 October seeking a bailout to restructure its debt.
"Government is actively engaging the IMF for a fund programme aimed at providing an anchor to our debt restructuring," the minister said.
Related Topics
Recent Stories
SACM visits GTVC checks attendance register
CEO APM Terminals meets Commerce Minister
KPITB, STZA sign agreement to declare Pakistan Digital City Haripur as Special T ..
Scottish leader scraps coalition deal with Greens
33 Passport Offices remain operational even on weekdays, says regional director
Islamabad Tennis Club demolished by CDA amid anti-encroachment action at public ..
DC for immediate distribution of agricultural fertilizer to farmers
Paris landmark Moulin Rouge's windmill sails collapse
DC visits 'Aaghosh' educational institution for orphans, assures support
Shayan, Rashid, Junaid to represent Pakistan in U12 Regional Qualifying Jrs
155 killed in Tanzania as heavy rains lash East Africa
Govt committed to empower youth with modern tech, IT: PM
More Stories From Miscellaneous
-
PDMA predicts gusty wind, rain with thunder, hails
2 days ago -
Iranian president Raisi given guard of honour at PM House
3 days ago -
Intellectuals, writers accolades Naseer Mirza on his literary contribution
4 days ago -
Bahawalpur Adabi Sangat hosts memorable mushaira
4 days ago -
Cattle farming vital to alleviate poverty in rural areas
4 days ago -
Pakistan: A land of tourism, archeological wonders
4 days ago
-
Transforming education sector: from job hunters to job creators
6 days ago -
Amjad Bobby remembered on 19th death anniversary for timeless contributions to music
10 days ago -
Legendary actor Nadeem’s 26 films released on Eid-ul-Fitr days in 50 years
11 days ago -
Besant Hall Cultural Centre to celebrate evening with Sanam Marvi on 26 April
11 days ago -
Radio Bahawalpur presents program “Eidi Shidi”
14 days ago -
Radio Bahawalpur to broadcast Eid programs
16 days ago