Based on a story published in the Financial Times on Monday, Zambia turned down China’s request for the World Bank to take part in its debt restructuring.
Regardless of Zambia’s separation from China. The country’s finance minister, Zambia, a country in southern Africa, plans to pay back a debt of around 13 billion dollars in the year 2023, three years after it missed payments.
In 2020, when the Covid-19 pandemic ravaged Africa, Zambia was the initial nation there to default on its 17.3 billion dollars in international debt.
The nation has made strides toward mending relations with donors since the election of businessman-turned-politician President Hakainde Hichilema in 2021.
The restructuring deal has stuck since the IMF authorized a Loan of 1.3 billion dollars to assist Zambia in regaining fiscal. As a result, Hichilema’s administration has been unable to receive the IMF bailout.
The $6 billion loan from Zambia to China is split across several large institutions.