Bulgaria Writes Off 77% of Zambia's Debt

Bulgaria’s Prime Minister Boyko Borisov passes by a portrait of communist dictator Todor Zhivkov. Zimbabwe's USD 8.2 M debt piled up during the communist regime in Bulgaria, which collapsed in 1989. Photo by BGNES

Bulgaria's government decided on Wednesday to waive USD 6.3 M or 77% of Zambian debt, which has not been serviced in the past 20 years.

The remainder of Zambia's debt – a total of USD1.886 M will be paid in four installments within one year, the Sofia-based cabinet said.

Should the Zambian government fail to fulfill its obligation under the agreement, it will be obliged to pay the debt in full in one installment in the framework of sixty days.

Zambia's USD 8.2 M debt piled up during the communist regime in Bulgaria, which collapsed in 1989, in return for arms, construction of roads and factories and technical aid.

During the years of the communist regime the debts of countries from the so called "Third World" to Bulgaria were kept secret.

When they were revealed to the public, it turned out that the international financial institutions have already drawn up a plan for them to be waived.

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