By Chileshe Mwango
Economist Trevor Simumba has ruled out the possibilities of china writing-off Zambia’s debt which is estimated at 30 percent of Zambia’s total external debt.
Last month, President Edgar Lungu asked his Chinese counterpart Xi Jinping for debt relief and cancellation in light of reduced revenue due to the negative impact of the covid-19 pandemic and the competing needs for the country to secure adequate resources to fight coronavirus while making efforts to stimulate its economy.
In an interview with Phoenix News, Mr. Simumba explains that china will not write off Zambia’s debt as much of the debt is commercial which is directly acquired from the china’s Exim bank and the Chinese development bank.
Mr. Simumba adds that only consensual loans can be forgiven but however stresses that this debt only amounts to about 10 percent and may not offer any relief to Zambia’s indebtedness.
He has since advised government to engage the Chinese government on how the debt can be re-profiled.