Chinese Foreign Ministry spokesperson Mao Ning said on Friday that China is closely following the developments of negotiations on Zambia’s debt restructuring and will act to assist Zambia in handling pertinent problems.
Mao underlined in a regular press briefing in Beijing that China is significantly involved in this matter. “Congratulations on the notable development in Zambia’s debt restructuring talks. China takes Zambia’s debt issues very seriously since Zambia is a friend and partner. As co-chair of Zambia’s Official Creditors Committee, China was the first official foreign creditor to help Zambia pay off debt and oversaw the initiatives producing notable debt restructuring results. Zambia and the world community acknowledge our efforts. Mao said China will keep working with the relevant parties to progress the debt treatment follow-up for Zambia.
Mao underlined China’s dedication to provide long-term assistance for underdeveloped nations, especially in terms of debt management. “China has always seen the debt issues of emerging nations from a long-term standpoint meant to support their growth. She said we ask the world community to cooperate with China and keep acting specifically to assist Zambia and other African nations in attaining more social and economic development.
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Zambia still has around $7 billion in debt outstanding that needs to be resolved. This is in spite of a deal last year with bilateral lenders covering more than $6 billion. Bondsmen and commercial banks owe the $7 billion.
The search for debt relief by the southern African nation has been protracted and draining. The official creditors rejected an agreement with bondholders to restructure nearly $3 billion in debt last October.
The development thus far has been much aided by China’s participation as co-chair of Zambia’s Official Creditors Committee and significant international creditor. Reflecting China’s influence and commitment to overcoming these financial obstacles, Zambia and the world community have recognized the committee’s efforts.
China’s strong involvement in Zambia’s debt restructuring is a component of its larger approach to help underdeveloped countries attain economic stability and progress. China hopes to inspire world support for Zambia and other African countries experiencing comparable financial difficulties by pushing for international collaboration.
Zambia’s financial situation has presented a major obstacle since the nation struggles to get complete debt relief. Notwithstanding the challenges, China’s influence has been crucial in helping negotiations and looking for environmentally friendly answers. Zambia’s financial recovery and future growth depend critically on China’s ongoing coordination and support as well as on international cooperation.
The remarks of the Chinese Foreign Ministry highlight the need of international initiatives in tackling the intricate problem of sovereign debt. Major creditors and foreign partners become becoming more important when emerging nations like Zambia negotiate debt restructuring.
For Zambia, economic stability depends on the debt being resolved—$7 billion. More efficient debt management and economic changes could be made possible by China’s support as well as expected worldwide cooperation.
While Zambia keeps working to control its debt, the involvement of the international community—led by powerful allies like China—remains crucial. With the development thus far, Zambia’s economic future has optimism and offers a basis for more negotiations and possible settlements.
