press releases
U.S. Government cancels 100 percent of Zambia's debt
LusakaDecember 30, 2005
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United States Ambassador to Zambia Carmen Martinez and Zambian
Minister of Finance and National Planning Ng'andu Magande on Friday,
December 30, 2005, signed an agreement that cancels all of the Zambian
government's bilateral debt to the U.S. government. The agreement,
which cancels USD 280 million (approximately 950 billion Kwacha) in
debt, is a consequence of Zambia's qualification for debt relief under
the Heavily Indebted Poor Countries (HIPC) initiative.
In her
remarks upon signing the agreement at the Ministry of Finance and
National Planning in Lusaka, Ambassador Martinez said cancellation of
Zambia's debt was part of a joint effort to reduce poverty, supported
by the Zambian government's commitment to a policy framework that
promotes sustained economic growth. Ambassador Martinez said that as
debt relief removed fiscal constraints on the government, Zambians
faced an important choice: more government spending and renewed debt,
or fiscal balance that leaves room for the private sector to create
more jobs and reduce poverty.
Ambassador Martinez complimented
the Minister, Hon. Magande, for providing the leadership that would
create a new tradition of fiscal stewardship for Zambia.
