Zambia,Saudi Arabia sign debt restructuring deal with $130m rescheduled
By Wilson Mulinda
Zambia and the Kingdom of Saudi Arabia have signed a debt restructuring agreement under the G20 common framework aimed at rescheduling over 130 million US dollars that Zambia owes that country.
The two countries have also signed another agreement for the approval of an additional 35 million US dollar loan to finance the construction of King Salman Specialized Hospital in Zambia.
Speaking during the signing ceremony in Lusaka, Finance and National Planning Minister, Situmbeko Musokotwane, says the agreement is the formalization between the two countries to restructure Zambia’s debt for the resumption of debt servicing in 2026.
Dr. Musokotwane says this is a significant milestone towards achieving debt sustainability and Zambia’s commitment to repaying its debt going forward.
He explained that the additional 35 million dollar loan is part of the 2024 annual borrowing plan that was approved by parliament in 2023, meant to finance works on the specialized hospital.
Meanwhile, Saudi Fund for Development Chief Executive Officer, Sultan Al Marshad, said the King Salman Specialized Hospital for Women and Children will provide a state-of-the-art medical facility with a capacity of 800 bed spaces.
