Zambia yet to discuss debt restructuring proposals with bilateral creditors (updated)

Jiangxi Bank

22/12/2022 12:24

(Adds further quotes, context)
    By Rachel Savage
       LONDON, Dec 22 (Reuters) - Proposals to restructure
Zambia's debts are yet to be discussed with bilateral creditors
under the multilateral Common Framework process, Zambia's
finance ministry said on Thursday.
    "The discussions we have had so far within the Common
Framework were focused on clarifying numbers and discussing
context. Debt restructuring proposals are yet to be discussed,"
the ministry said in a written statement to Reuters.
    Zambia became the first African sovereign default in 2020
and has struggled to finish a much-delayed restructuring of
debts that reached 133% of GDP at the end of 2021, according to
the International Monetary Fund (IMF).
    China is Zambia's largest bilateral creditor and Chinese
lenders accounted for about a third of debt that stood at $17.27
billion at the end of 2021, according to Zambian government
data.
    China was "seeking clarifications" on IMF assumptions meant
to underpin the debt restructuring, Zambia's finance minister
Situmbeko Musokotwane told the Reuters NEXT conference last
month.
    Although China had been blamed earlier this year for holding
up the start of debt talks, it has consistently expressed its
support for resolving Zambia's debt issues and for the Common
Framework negotiations.
    Zambia's finance ministry on Thursday reiterated that the
Export-Import Bank of China is representing "the interests of
Bilateral Chinese debt" on the Common Framework official
creditor committee.
    "With regard to commercial facilities, the Zambian
Government has engaged the banks and Sinosure bilaterally in the
past on the insured loan facilities," the ministry said, in
response to questions about whether it had had contact with its
Chinese commercial creditors.
    "Currently, it is our understanding that loans insured by
Sinosure are part of the debt restructuring discussions within
the Common Framework."
    A nearly $1 billion joint hydropower loan from EximBank and
the Industrial & Commercial Bank of China  601398.SS , a
commercial, state-owned Chinese lender, is "part of the debt
restructuring exercise within the Common Framework and is being
discussed by the Official Creditor Committee", the statement
said.
    Jiangxi Bank  1916.HK , China Minsheng Bank  600016.SS  and
Bank of China  601988.SS  are among other commercial Chinese
lenders that have lent to Zambia.
 (Reporting by Rachel Savage in London; Additional reporting by
Bhargav Acharya in Johannesburg; Editing by James Macharia
Chege, Kirsten Donovan)
 ((Bhargav.Acharya@thomsonreuters.com;))