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Debt treatment -
May 11, 2005

Supporting agreements with the international institutions

program with the IMF : arrangement under the Poverty Reduction and Growth Facility (PRGF) approved on June 16, 2004
Download the IMF report : IMF report

Total external debt of the country

$7 000 million as of December 31, 2003

$1 920 million of which being due to Paris Club as of March 31, 2005

Amounts treated

$1 763 million of which $1 403 million being canceled, of which $360 million being rescheduled

Accorded treatment

Reduction of the stock of debt

Completion point reached on April 08, 2005

Categories of debt treated

Treatment of arrears as of March 31, 2005. Treatment of the stock as of April 01, 2005


Repayment profile

Treatment under HIPC Initiative Exit terms


Specific provisions

Payment of non-consolidated amounts before December 01, 2005

Comparability of treatment provision

The Republic of Zambia was declared eligible to the enhanced HIPC initiative by the IDA and the IMF in 2000 and was declared to have reached its Completion Point on April 8, 2005. In this context, the Republic of Zambia commits to seek promptly from all its external creditors which are not participating in these Agreed Minutes, their appropriate contribution in terms of debt relief to the enhanced HIPC initiative, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.

The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements will be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Zambia's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Republic of Zambia and creditor countries not listed in these Agreed Minutes.

Consequently, the Republic of Zambia commits not to accord any category of creditors -and in particular creditor countries not participating in these Agreed Minutes, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.

Cut-off date

January 01, 1983

Organisation of the session

The meeting was chaired by Mrs Odile Renaud-Basso, Co President of the Paris Club.

The head of the debtor country's delegation was Mr. Ng'andu P. Magande, MP, Minister of Finance and National Planning.

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