The Senate of Brazil has approved up to 90.7 million United States dollars or 80 percent of the 113.4 million United States dollars debt which Zambia owed the South American Economic Giant as at 31st July, 2011.

This is according to a message from the International Affairs Secretariat of the Brazilian Ministry of Finance delivered this morning to Zambia’s Finance Minister Felix Mutati by the Brazilian Ambassador to Zambia Anna Maria Pinto Morales.

The Brazilian Senate has agreed that the outstanding debt of 113.4 million United States dollars which Zambia owed should be treated through a special bilateral arrangement whereby 80 percent will be cancelled while 20 percent should be repaid.

Commenting on the development, Mr. Mutati said the act of goodwill by the Brazilian Senate is well received by the people of Zambia as it is an affirmation of the good relations between the two countries.

Mr. Mutati said that 90.7 United States dollars million off our external debt stock is a manifestation of a new beginning in our socio-economic relations and a huge contribution to Zambia’s economic recovery programme.

Ms. Anna Maria Pinto Morales has said Brazil stands ready to strengthen cooperation with Zambia in capacity building in the agriculture sector, and the school feeding and the social cash transfer programs.

Arrangements are underway for the two countries to sign the 90.7 million United States dollars debt relief pact.

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