Zambia cancels $1.6b loans from Chinese banks
President Hakainde Hichilema’s government this week cancelled loans from the China Exim Bank and Industrial Commercial Bank of China to help manage its debt overhang.
The cancellation of the undisbursed loans, which will see Zambia halting the construction of several roads, highways and information and technology projects funded by Chinese lenders, came a few days after international financiers agreed to provide debt relief to the country.
Analysts said the latest developments around the Zambia and China debt relief negotiations could also provide an insight into how Beijing will deal with similar crises across Africa.
“Ongoing negotiations to restructure Zambia’s debt are most likely to end in a compromise that will offer insight into China’s potential position in other countries’ creditor talks, especially if Beijing decides to grant debt forgiveness to Lusaka,” said the Rane Network, a geopolitics intelligence solutions provider in its latest review.
First, please LoginComment After ~