The Zambia Institute of Chartered Accountants – ZICA – has revealed that Zambia will now be in a stronger position to support its economic growth as it is now credit worthy and a more attractive destination for Foreign Direct Investment – FDI – after the Official Creditors reached a decision to restructure Zambia’s liabilities with bilateral partners at the just ended meetings in Paris.
ZICA notes that the importance of the successful agreement that would enable the country to reduce its debt burden while still meeting its financial obligations cannot be over emphasised as the debt-restructuring program will significantly decrease Zambia’s debt-to-GDP ratio.
Speaking in a statement availed to the Zambian Business Times – ZBT, ZICA President Cecilia Zimba said the Institute is confident that this restructuring will release and relieve funds that are urgently needed for national development.
Zimba stated that the debt restructuring the country has attained means that the country will pay debt over a longer maturity period and at more affordable interest rates. This deal is for public sector debt amounting to $6.3 billion.
“We are now looking forward to the 360 degrees turnaround of prospects for our Country as Debt repayment has been a very big burden with respect to our economic growth. It is common knowledge that our debt-to-GDP ratio has reached unacceptable levels and at default, support from lenders stops coming because a country becomes high risk.”
“We are also confident that a similar deal will be struck with private sector creditors. The debt- restructuring program that involved negotiations with its creditors to restructure its debt obligations and reduce its debt burden could not have been managed better, and what we are celebrating today, is testimony of the work that went into this.”
She added that from this milestone, more resources are anticipated to be channelled towards critical sectors such as healthcare, education, infrastructure and general strides to improve the living standards of the citizens.
Zimba also noted the need for the nation to work together and put all the efforts towards ensuring that all resources made possible by the debt restructuring process are prudently used, made available in a timely manner, to unlock the country’s immense prospects in all sectors of the economy, for sustainable, holistic and inclusive national development.
She added that the Accountancy profession will support all interventions by Government aimed at ensuring that all resources are accounted for.
“Transparency and accountability will continue to be the two words at the centre of our operations as a profession in order to protect public interest and promote prudent public financial management.” She added.
