Zambia, the first African nation to seek debt relief from Eurobond holders since the onset of the pandemic, aims to reach a restructuring deal with creditors by the end of a six-month interest “standstill” it is seeking, finance minister Bwalya Ng’andu said on Tuesday. The government also plans to reach an agreement in principle with the International Monetary Fund (IMF) over an economic programme in the same time frame, he said in a webcast on Tuesday. Zambia’s $1bn of Eurobonds due in 2024 fell 1.5% to 51.28c on the dollar by 4.10pm in London. The country has over the past decade taken on nearly $12bn of debt even as growth slowed and foreign-exchange reserves dwindled. The pandemic accelerated the crisis, prompting the government last week to request an interest-payment holiday from holders of its $3bn in Eurobonds while it plans a debt restructuring together with its adviser, Lazard Freres. Zambia wants debt relief from commercial creditors similar to what the so-called Paris Club group of lender nations had agreed to under a G20 initiative, according to Ng’andu.
SOURCE: BUSINESS DAY LIVE
More Stories
A Mangrove Project is the Star of Kenya’s Gazi Bay
Not Enough Females Operating in the African Venture Capital Space
Slavery has a Complex Legacy in Niger
Human Trafficking in Tanzania Exposed
Many African Countries are Also Grappling with a Serious Dollar Shortage Crisis
Harare’s New Scheme to Curb an Economic Collapse
South Africa Closes Off Youth Month on a Tragic Note
Activists Want Morocco to Account for Border Deaths
The Digital Economy as an Important Driver of Long-term Growth in Africa
The Work Must Continue… Equity & Innovation for Africa’s Recovery
Botswana and Cape Verde Moved to Level 3- High Risk
10 Best Experiences in Kenya