28/03/2024
Debt restructuring agreement will stabilise exchange rate- ZACCI
By Roland Kalangu
THE Zambia Chamber of Commerce and Industry (ZACCI) president Anthony Kabaghe says the debt restructuring deal will stabilise the exchange rate.
And Kabaghe says to ensure the long-term stability of the exchange rate and sustained economic growth, the government should priotise transitioning the nation into an export-oriented country.
In a statement by ZACCI Secretariat, Kabaghe said debt restructuring agreement has fostered confidence in the market, and will cultivate a culture of predictability, and enable planned investment strategies, ultimately leading to economic growth.
He said the restructuring of the Eurobond will provide crucial debt
relief, with approximately $840 million in claims being foregone, and offering approximately US$2.5 billion in cash flow relief through reduced debt servicing payments during the IMF Programme period.
And Kabaghe says the agreement will also improve the country's credit ratings on the international
financial markets, making it easier and more affordable for Zambia to access external financing in the future.
He says with the reduced debt servicing obligations, the Zambian government can allocate more resources to social sectors like education, healthcare, and social welfare, leading to improved living standards and quality of life for its citizens.
Kabaghe says to ensure the long-term stability of the exchange rate and sustained economic
growth, the government should priotise transitioning the nation into an export-oriented country.
