Germany cancels all of Zambia's outstanding debt

The German government has canceled all of Zambia's outstanding debt amounting to about 906 billion kwacha (238 million U.S. dollars).

The documents confirming the cancellation of the debt were signed in Lusaka Thursday.

German Ambassador to Zambia Irene Hinrichson signed on behalf of her country while Secretary to the Treasury Evans Chibiliti signed for Zambia.

Chibiliti commended the German government for its continued support to Zambia in various sectors.

He assured the German government that resources saved as a result of the cancellation will go towards the implementation of development projects.

Chibiliti said Zambia is directing all resources saved from Zambia's attainment of the Heavily Indebted Poor Countries (HIPC) initiative completion point to poverty reduction programs.

The HIPC initiative has boosted investor confidence and increased Zambia's foreign exchange inflows, he said.

Hinrichsen said Germany is happy with efforts by Zambia to develop the country's economy.

She said Zambia has recorded a number of positive economic achievements that have continued to attract more German investors.

Source: Xinhua