U.S. Treasury Secretary Janet Yellen signs a guest book at the State House during her visit, in Lusaka, Zambia, January 23, 2023.U.S. Treasury Secretary Janet Yellen signs a guest book at the State House during her visit, in Lusaka, Zambia, January 23, 2023.
However, Yellen said she was encouraged that progress could shortly become possible following her meeting with Chinese officials in Zurich last week. “I specifically raised the issue with Zambia and asked for their cooperation in trying to reach a speedy resolution.She told Zambian Finance Minister Situmbeko Musokotwane that the timely finalisation of Zambia’s debt treatment was a top priority for the Treasury.
Calling for the help of global leaders to advance the restructuring process, he said it was needed to create conditions conducive to investments and to reduce pressure on Zambians to migrate. However, there were two main sticking points with China, the official added: Beijing’s insistence that local debt owned by foreign investors be included, and that multilateral development banks also take a haircut – both of which points have been rejected by the United States, Zambia and other countries.