The Paris Club yesterday confirmed that it is providing Zambia ‘a time-bound suspension of debt service’ until 31st December 2020.
The suspension is effective 1st May 2020, with Zambia committed to using the resource freed through this repayment suspension initiative to increase spending to mitigate the health, economic and social impacts of the coronavirus, according to Bloomberg.
The statement says that the Paris Club will continue to closely coordinate with other stakeholders in the implementation phase of this initiative, ‘in particular when considering a possible extension of the suspension period’.
Additionally, its members that will participate in the reorganisation of Zambia’s debt are Belgium France, Japan and the UK.
Zambia approached the Paris Club in early June for a suspension of the country’s debt and interest repayments.
Zambia also confirmed in July that it requested a debt relief and the cancellation of some of the country’s debt from China.
Data from the Ministry of Finance at the start of the year suggested that debt service to the Paris Club this year was only around USD14mn but outstanding debt owed to individual members was USD100 million.