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Debt restructuring agreement elates economists

The debt restructuring agreement by President Hakainde Hichilema and Zambia’s official creditors has impressed Zambians.

An Economic Expert Emmanuel Zulu, said the agreement by the president and the creditors to restructure Zambia’s debt, is a positive move for the Zambian economy because it will bring in a lot of investors to invest in the country.

Mr. Zulu said the money market might also respond positively, saying that the Kwacha might appreciate further against major currencies.

“We will see that more monies or resources will be available for channelling towards social spending,” Mr. Zulu said.

The economist said that he expects more relief from other lenders, adding that this deal will open doors for more negotiations.

Meanwhile, another Economist Trevor Hambayi, said the move is positive because the county has been trying to get to such a position for some time, saying that the country contracted unsustainable debt.

“It will help the county in economic recovery and job creation,” Mr. Hambayi said.

Mr. Hambayi further advised government to manage the resources properly to avoid financial deficit.

And another Economist Kelvin Chisanga said that the debt restructuring agreement has put Zambia in a good position to recover its economy.

“The move has given a strong signal to the to the internal market,” said Mr. Chisanga.

Mr. Chisanga added that this will trigger investors’ confidence and the local currency will appreciate against the world’s major currencies.