WASHINGTON, March 26, 2024 — The World Bank today released the following statement on Zambia:
“The World Bank welcomes the agreement between the Government of the Republic of Zambia and bondholders on the terms for restructuring Zambia’s Eurobonds. This follows the agreement Zambia reached in 2023 with the official bilateral creditors. The Official Creditor Committee has confirmed that the agreement meets comparability of treatment requirements. The terms are consistent with the parameters of the Joint World Bank-International Monetary Fund Debt Sustainability Framework. To finalize the debt restructuring process, other commercial creditors must now agree to restructure debt on terms that are comparable to those offered by bondholders and official bilateral creditors.
Zambia’s agreement on the terms of debt restructuring with Eurobond holders represents a critical milestone toward restoring debt sustainability. Completion of negotiations with other commercial creditors will bring a final resolution to Zambia’s debt crisis. This will help Zambia attract new investments, accelerate growth, generate jobs, and respond to urgent priorities, such as the ongoing drought.
The World Bank is the largest provider of development financing to Zambia. Since 2021, the World Bank, through IDA, has committed over USD 2.1 billion to Zambia to support projects focused on private sector development and jobs, inclusive service delivery, and sustainable and resilient development. Starting July 2023, all new World Bank financing to Zambia has been provided as grants to further help the country while it is in debt distress. The World Bank’s cumulative net positive flows since 2021 have reached USD 1.2 billion.”
