The government has signed the Memorandum of Understanding (MoU) with the government of France on debt restructuring.

Speaking during the Zambia/France Bilateral meeting Minister of Finance and National Planning Situmbeko Musokotwane says the agreement is aimed at implementing the recommendations outlined in the MoU signed in October 2023.

ZANIS reports that the MoU is signed under the G20-Paris Club Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative (DSSI).

Dr Musokotwane highlighted that the bilateral agreement is the first to be concluded following the MoU and sets the stage for the finalisation of an additional 15 agreements with other creditor countries.

He expressed Government’s gratitude to the French Government, the G20, and the Paris Club for their commitment to fostering a fair and effective resolution of the country’s debt challenges.

And France Head of Multilateral Affairs – Ministry of the Economy, Finance and Industry William Roos, highlighted that the agreement will reduce financial pressure and create a strong bond between the countries.

Mr Roos noted that the MoU is a significant milestone and highlights the importance of international cooperation in tackling debt sustainability challenges faced by developing nations.