Zambia has signed a debt restructuring agreement with Italy, marking another milestone in efforts to restore debt sustainability.
Finance and National Planning Minister Dr. Situmbeko Musokotwane said the agreement relates to a loan worth 94.6 million Euros, originally contracted in 2018 between the Government of Zambia and Italian lender Intesa Sanpaolo.
He explained that the debt, now owed to the Government of Italy, has been restructured, extending the repayment period from 2027 to 2043.
Dr. Musokotwane said the deal will ease immediate debt service pressures and create fiscal space for investment in infrastructure and social services.
The Minister added that government has resumed servicing debt on all restructured agreements, signaling progress in the country’s debt restructuring programme.
He noted that the deal was concluded under the G20 Common Framework for Debt Treatment, reflecting continued cooperation between Zambia and its creditors.
Dr. Musokotwane has since called on remaining creditor countries to finalize negotiations to complete the restructuring process, reaffirming government’s commitment to honouring debt obligations and maintaining transparent engagement with creditors.
Meanwhile, Italian Ambassador to Zambia Enrico De Agostini said Zambia’s commitment to repay its debt to Italy paves the way for potential support for trade and investment from Italian financial institutions.
He added that Italy is ready to cooperate with Zambia on its energy transition, stressing that debt restructuring has restored credibility and reliability — key assets for international investment and trade.
