Irish Examiner view: Fear of collapse

Zambia debt

Zambia is seeking €8.3bn in debt relief from major lenders to try and get its public finances in order.

The case of Zambia’s international indebtedness has come into sharp focus in recent days following the intervention of a group of international economists and academics who have recommended that international lenders write off a significant slice of the country’s loans.

Zambia is seeking €8.3bn in debt relief from major lenders — including private funds run by the world’s largest investment manager, BlackRock — to try and get its public finances in order. Ahead of crucial talks with the British, French, and Chinese governments, the anti-poverty charity Debt Justice has said only a major debt write-off could save the Zambian economy from collapse.

Chad and Ethiopia are already seeking debt relief and Sri Lanka and Bangladesh are also looking for IMF bailouts.

Zambia, facing massive interest repayments in the coming years, should have those payments permanently cancelled if it is not to fuel another debt crisis in a decade’s time.