Zambia Asks Paris Club To Suspend Debt Payments Until December

Zambia has asked the Paris Club of creditor nations to suspend principal and interest payments on its debts to all official creditors until the end of December. 

Speaking to the media on Sunday, a spokesperson for the Ministry of Finance said Zambia remained committed to servicing its debt repayments dated before May 1st.

Even prior to the coronavirus crisis, Zambia had been struggling with its growing public debt. In 2019, external government debt jumped to 45% of gross domestic product (GDP) - up from 37% in 2018. Total debt stock has been estimated estimated at 89%, according to the World Bank. 

Zambia has been listed among countries eligible for debt relief under the the Debt Service Suspension Initiative, which aims to help nations respond to the health challenges and economic shocks of the Covid-19 pandemic. 

However, lenders have been reluctant to extend further credit to Zambia during the crisis, with the IMF citing existing high debts as a principal reason for not extending its Covid-19 relief funding to Zambia.