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Alba Iulia
Thursday, July 2, 2020

Zambia creditors call for IMF plan to anchor debt overhaul

Economy Zambia creditors call for IMF plan to anchor debt overhaul

Zambia’s newly-formed creditor group is encouraging the government to bring a planned debt overhaul under the scope of an International Monetary Fund bailout, to help put the nation’s public finances on a sound footing.

The government in Lusaka should vet its reform plans with the Washington-based fund and unlock aid to help finance projects to support an economic recovery, according to a representative of investors holding about a third of the nation’s dollar bonds.

Talks between Zambian officials and the IMF started on Monday after a request for emergency funding was sidelined due to concern over the sustainability of debt.

The government has hired Lazard Ltd to advise on its debt that’s set to exceed 100% of economic output.

“You want to see a situation where the government is emerging from a crisis, not kicking the can five years down the road,” Rafael Molina, a managing partner at the creditor group’s adviser Newstate Partners LLP, told Bloomberg.

Molina declined to comment on the parameters or targets of a potential restructuring.

Zambia has about $11 billion in external debt that may be renegotiated, including $3 billion of Eurobonds.

A $750 million note is set to mature in Sept. 2022 while $56 million in interest will fall due on July 30, according to data compiled by Bloomberg.

The notes trade at about 53 cents to 54 cents on the dollar, indicating market expectations for bondholders losing about half the value of their investments

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8 COMMENTS

  1. So all that cost of holding meetings in expensive places went to worst. Think about travel costs, campaigns, printing, time reading and writing articles about the debate. Think about MPs salaries and allowances during the discussions, think about rumours of bribes for and against and the loss of trust. Believe me, democracy is very expensive. It breeds corruption too. Why don’t we try our village systems and kingdoms.

  2. IMF ,

    Don’t give lungu any money , he will only use it to jail critics and shut down independent media…..

    while his corrupt ministers are walking free…..

    10
  3. Good stuff. There is a reason we procured this experienced companies services and not the baby hyena HH. What debt management does he know ? His only expertise is crying after losing and selling national companies for peanuts for his own benefit. We cannot have such crooks anywhere near power. Tbe good thing is that zambians know this and have rejected this desperate thief over 3 times. I have lost count. Kiki

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  4. Don’t send the IMF or anyone to help these thieves and do not by all means give them a single coin let them pay what they borrowed. They are thieves they will blow up all the money…a good example is the extension of the new terminal at Lusaka airport…something fishy going on.
    We are tired of their tricks let them throw them selves off the bus so that everyone can see clearly how corrupt this garbage administration is.
    BA PF Kuya bebele….wina asa polomya

  5. “You want to see a situation where the government is emerging from a crisis, not kicking the can five years down the road,”

    That is the best advice one can give to Lungu and his PF tandem of thieves. Its free advise. When they were borrowing they never thought of how they were going to pay back. They rig elections just put the country in a mercy. Please IMF don’t give these thieves pretending to be a government any money. Rather demand to disband electoral commission of Zambia to form a more credible one represented by all stake holders, for electoral reforms, police reforms and a free and fair election.

  6. In Malawi, 10 political parties came together to kick out the incumbent. In Zambia you want to kick out the corrupt while you are divided. Hakainde stole from privatization. Mumba has been found guilty by the courts from stealing Embassy money. Kambwili’s corruption is the PF corruption were as Minister he also got rich by sharing in govt tenders. All these have no credibility. And each wants to be president now. And you think you can remove a corrupt & criminal PF govt like this?

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