DEBT RESTRUCTURING EXPLAINED IN LAYMAN'S TERMS
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Debt restructuring is an event in which a debtor (in this case Zambia) is in financial difficulty and a creditor (in this case China) grants a concession to the debtor in accordance with a mutual agreement or court judgment.
In a layman's language debt restructuring is a process used by companies, individuals, and countries to change the terms on loans to make them easier to pay back.
It is like this: You asking all the people you owe to say give me breathing space to pay you in a structured manner as I expose to you my income, spending and repayments. You can't get your Nkongole from a dead or dysfunctional person but if you spread your repayments differently, shift dates, reduce installments etc, you are likely to get your money in total and more.
Everyone in their normal senses should understand this.
Even at court when you take someone on a civil case for Inkongole, they ask them how best they can repay you. That is a form of debt restructuring too.
Types of debt restructuring
1. Extending the repayment term.
2. Reducing the interest rate.
3. Reducing the remaining balance.
4. Bringing a past-due account current and adding the unpaid portion back to the principal balance... ,et cetera.
Benefits of Debt Restructuring
*Free up your cash: deferment and /or reduction in installments/ interest rate free up the immediate cash and avoid mismatches... et cetera.
ADDENDUM
Inkongole taibola: (Bemba proverb by Sir APM Lukwesa) translation: Debts don't decay. Interpretation: No matter how long one takes to repay a debt - it still remains a debt: The debts which another person owes you are not like perishable goods regardless of how long you want to be paid back.
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𝒮𝒾𝓇 𝒜𝒫ℳ ℒ𝓊𝓀𝓌ℯ𝓈𝒶 iii
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| SIR APM LUKWESA |
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