US Treasury Secretary Janet Yellen has stressed the need for Zambia to restructure its debt during a visit to the country, and that she hopes progress might be made following her candid discussions with China, which is owed over $6 billion by Lusaka.
Yellen noted that Zambia’s debt overhang was a drag on its entire economy and that China had been an impediment to addressing the southern African nation’s debt crisis – government data indicated that Zambia’s total external debt would reach $17 billion by the end of 2021.
However, following her meeting with Chinese officials in Zurich last week, Yellen expressed optimism that resolution would be possible in the near future.
“I mentioned the matter with Zambia (with Chinese authorities) and requested their assistance in attempting to seek a swift resolution. And our discussions were productive “Yellen stated.
She informed Zambian Finance Minister Situmbeko Musokotwane that the Treasury’s primary goal was the speedy completion of Zambia’s debt treatment.
Yellen stated that she was eager to continue discussions with Musokotwane and other Zambian officials regarding Zambia’s “impressive progress” on economic reforms and how regional economic integration and strengthening trade ties could contribute to the country’s prosperity.
However, at the beginning of a bilateral discussion with Yellen, Musokotwane stated that the debt restructuring process had been progressing slowly and that its outcome was uncertain.
In requesting the assistance of global leaders to progress the restructuring process, he stated that it was necessary to foster investment-friendly conditions and lessen pressure on Zambians to move.