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Alba Iulia
Tuesday, October 20, 2020

Holders of Zambian Eurobonds Reject Government Request to Delay Interest Payments

Economy Holders of Zambian Eurobonds Reject Government Request to Delay Interest Payments

A group representing many holders of Zambian Eurobonds has rejected a government request to delay interest payments until April, but said it was ready to look at a potential bond swap.

Zambia, one of the world’s largest copper producers, had been wrestling with growing public debt even before the coronavirus pandemic forced lockdowns and cut demand.

Last week it proposed deferring interest payments on its three outstanding dollar-denominated bonds to give it time to finalise a debt sustainability analysis and sketch out the parameters of a restructuring plan.

“While the Committee stands ready to engage constructively and proactively on finding ways to support Zambia, its members are unable to provide a positive response,” the Zambia External Bondholder Committee, which holds a blocking stake, said.

The committee said the government had not engaged with the group since its formation in June and that the budget presented to parliament last Friday moved the country further away from a path to debt sustainability with long-standing fiscal imbalances not being addressed.

The committee consists of 14 U.S. and Europe-based financial institutions which hold in aggregate some 40% of Zambia’s outstanding Eurobonds, including at least 25% in each of its three outstanding Eurobonds.

Source:Nasdaq

31 COMMENTS

  1. Hope now sensible and logical advise, give freely by the majority of Zedians, will start sinking. That is, the PF govt should
    1. STOP contracting more debt for the so called unprecedented development:),
    2. STOP over-priced projects (corruption)
    3. become TRANSPARENT with public finance
    4. STOP nepotism in govt
    5. etc

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  2. This debt cant be reversed. Let’s debate on how we can pay it back. I dont see any need of blaming leaders on the debt for now. Let the brightest ideas give a solution. Else we will go in circles with subsequent governments.

  3. CURSE JK FOR HIS DUNUNA REVERSE SONG. IT HAS BEEN MANIFESTING VERY WELL FOR THE PF BY TAKING THEM ALWAYS BACKWARDS

    16
    4
    • JK did that for his own personal gain. He did not do it for Zambia. Have you seen his Meanwood mansion which has been circulating on social media?

  4. Edgar Pombe is the best thing that ever happened to Zambia… Sipping Champaign and eating Cavier from Kafue breams. Life is good. *Dunana Reverse * playing in the background* Shoult out to the pips of Lukashya. Enjoy the cheese.

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  5. If our 2021 budget had hinted at austerity,they would have taken us seriously. You are at least $18Bn in debt and you want repayment relief just to spend some more billions? We are seen as a bunch of jokers.It took only four days to reject our request.

    15
  6. Edgar Pombe is the best thing that ever happened to Zambia… Sipping Champaign and eating Cavier from Kafue breams. Life is good. *Dununa Reverse * playing in the background* Shoult out to the pips of Lukashya. Enjoy the cheese.

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  7. This was expected. The bond holders have not seen anything in our 2021 budget that will increase productivity and bring liquidity in our coffers for them to be confident to extend the debt payment. even me if i see that the person i lent money to has a bleak future cash flow i would rather get my money today when he has it to avoid me losing it all. There is nothing in the budget that hinted at inducing more productivity and neither were there proper austerity measures put in place.

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  8. Personally, I am very disappointed by this decision. Zambia’s not running away from this debt cannot run away. We hv not even asked for a reduction in the rate of interest. We hv merely said give us a short period of moratorium or suspension of interest payments so that we sort a few things out. In all debt contracts, it’s important to be flexible whn there’s a material change in conditions. There’s nothing that’s not negotiable.

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  9. Personally, I am very disappointed by this decision. Zambia’s not running away from this debt and cannot run away. We hv not even asked for a reduction in the rate of interest. We hv merely said give us a short period of moratorium or suspension of interest payments so that we sort a few things out. In all debt contracts, it’s important to be flexible whn there’s a material change in conditions. There’s nothing that’s not negotiable.

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  10. Fake news again sponsored by that silly boy hh. If it is not announced by the ministry then believe it at your own risk. Let us learn to wait for official announcements from reliable official sources. This is what hh and upnd wish should happen.

  11. Kaizer Zulu,you claimed in your previous posting that there was a difference between a default and a restructure. There is really no difference because this is purely a default since they are now asking the creditors for more time. Technically, Zambia is insolvent and does not have immediate cash to meet the interests payment.

  12. It seems this government wants to treat private bond holders like it does nurses and teachers.

    Just pay them late. Right, boss?

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  13. Copy the Rwandan modal mwe Bantu, the system of governance in that country makes Africa orotund. Type Unapologetic Nomads on YouTube and let them walk through the Rwandan transformation.Being Zambian in the diaspora, I am thinking of setting up camp there….it’s refreshing . WATCH , you’ll learn folks.

  14. Some Zambians are dull indeed. Note that in Accounting to every DEBIT there MUST be a CREDIT.
    Meaning the Unprecedented development we have had since Kaunda regime there must be LIABILITY.

    If PF had to lose next year elections GOD FORBID the next government will have no problem with Infracture development
    but Just work on MACRO and MICRO ECONOMICS.
    Simple

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  15. Give them their money and you thought it was just for free. Typical of Zambian mentality taking it to global stage.

    Let business be business.

    Your leaders stole part of the funds and they think they can win sympathy from the lenders.

    PF must go!

  16. its members are unable to provide a positive response,” the Zambia External Bondholder Committee, which holds a blocking stake, said…

    Is this not rejection?

  17. This is business btwn Zambia and the bond-holders. In business, there’s nothing that’s not negotiable. Even Christiano Ronaldo and Lionel Messi hv a price. It just depends on the situation prevailing. After this lesson will we be putting our best foot forward in economic matters? I hope so but chances may be slim considering that the architect of the mess we are in now is Alexander Chikwanda and he remains a larger than life figure in the PF.

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  18. How can you ask for a freeze in interest payment from someone and you don’t allow them to ask questions? Mistake by the Minister and his team.
    Muzaiziba ziko.

  19. Gem of a Country – It is too small and cannot afford extra parasites. It is easy to talk about some things when everything happens within a 50 km radius. Notwithstanding the strong-fisted leadership which we can make very good use of here.

  20. This is like a case of a begger giving terms and conditions to the the well wishers.

    Michael Sata brought misery to this country. Zambians must learn to choose upright leaders.

    PF must go!

  21. The joking republic, your debt is 104% of GDP and you want a moratorium and in your wisdom you thought any right thinking person or organisation would listen to you. Reckless borrowing, no leadership whatsoever and I am sadly PF, but its time some of us started standing on the side of the truth and not just defending because we belong to the party, a big NO

  22. Time value of money at play here. Is Zambia offering more interest in asking for the debt to be suspended for 6 months? The money due now won’t have the same value after six months so what compensation is Zambia offering for this loss in value? Maybe the bond holders will hear them but again does Zambia have that capacity to pay more?

  23. How shameful. These funds come from pensioners and we want to shamelessly missuse, squander and ask for debt write off!!! Nikanda?

Comments are closed.

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