Zambia to cancel over $2 bln in loans to address debt woes

Banka Intesa Sanpaolo dd

29/07/2022 23:47

LUSAKA, July 29 (Reuters) - Zambia has engaged lenders to
facilitate the formal cancellation of over $2 billion in
undisbursed loans as part of measures to address its debt
challenges, the ministry of finance said on Friday.
    The ministry said in a statement that it has taken measures
to cancel some loan financed projects and to change the scope of
a few critical projects.
    The creditors of undisbursed loans, which are being
cancelled, include Exim Bank of China, Jiangxi Bank, Intesa
Sanpaolo bank and Israel Discount Bank, the statement said.
    The ministry of finance also said that a number of
continuing projects, which were initially financed through
commercial loans, will now be financed through government
revenues over the medium term.
    In 2020, Zambia became the first African country in the
COVID-19 pandemic era to default on its debts, struggling with
external debts that reached over $17 billion at the end of last
year, according to government data.

 (Reporting by Chris Mfula, writing by Anait Miridzhanian)
 ((Anait.Miridzhanian@thomsonreuters.com; +48 58 769 66 05;))