The World Bank is releasing $100 million for Zambia amid substantial delays in its debt restructuring efforts as its creditors balk, it said on Wednesday.
The World Bank approved a $275 million grant to Zambia in October to help the southern African nation recover from the effects of the Covid-19 pandemic, the fallout from the war in Ukraine and emerge from its debt crisis. .
Zambia became the first African country to default in the COVID-19 era in 2020, but the restructuring of its nearly $15 billion foreign debt to creditors, including China and Eurobond holders, has been considerably delayed.
“Zambia urgently needs debt relief to restore debt sustainability over the medium term and attract the new investment needed for growth and jobs,” World Bank President David Malpass said in a statement.
“I remain deeply concerned about the slowness of the creditors’ committee and the impact of delays on growth and poverty,” he added.
Zambia has continued to implement agreed structural policies to achieve macroeconomic stability even as its official bilateral creditors delay discussion and finalization of the country’s debt treatment under the G20 Common Framework, according to the statement.
Zambia has agreed the principles of the debt restructuring with its creditors and is focused on signing an agreement on its terms with them by the end of March, President Hakainde Hichilema said on Tuesday.
