Zambia’s government has reached agreement with its official creditors to restructure its foreign debt, it announced on June 22.

The deal paves the way for Zambia to unlock a new tranche of funding from the International Monetary Fund.

The settlement will allow the country to restructure $6.3 billion in debt, according to media reports. Zambia first defaulted on its external debt in November 2020.

Bank of Zambia figures put external debt at 48.6% of GDP in 2022, down from 61.2% the year before