Exchange of Notes for Debt Relief Measures for Zambia under the Debt Service Suspension Initiative (DSSI)

          On 30th July 2021, H.E. Mr. MIZUUCHI Ryuta, Ambassador of Japan to the Republic of Zambia, and Mr. Fredson Yamba, Secretary to the Treasury of the Ministry of Finance, signed and exchanged notes concerning debt relief measures for Zambia under the G20 Debt Service Suspension Initiative (DSSI), amounting to approximately 90,390 thousand Japanese Yen or 822 thousand US Dollars.

          The Exchange of Notes follows the conclusion of consultations between representatives of the Government of the Republic of Zambia and of the Governments of the Paris Club creditor countries, which took place in Paris in August 2020.

          Under this initiative, the Government of Japan has offered debt relief measures in the form of deferral to be taken by the Japan International Cooperation Agency (JICA).

          The debts to be deferred consist of those payable under loan agreements concluded before 24th March 2020 between the Government of the Republic of Zambia and JICA on the extension of yen loans. The total amount of deferred debts will be paid in six equal semi-annual installments beginning 15th June 2022. The rate of interest on the deferred debts will be 0.01%.

          Japan has been consistently supporting Zambia’s efforts to achieve debt sustainability in the wake of the severe impact of COVID-19 pandemic upon its economy. The DSSI serves this goal and allows the Government of Zambia to focus its resources on priority expenses, such as fighting the pandemic and establishing value chains of local products.