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Alba Iulia
Thursday, October 22, 2020

Fitch says expects debt-strained Zambia to default in the coming months

Economy Fitch says expects debt-strained Zambia to default in the coming months

Rating agency Fitch says it expected Zambia to default on its government debt in the coming months, having become locked in a row with its creditors over delaying some of its bond payments.

Zambia’s finance ministry issued a statement on Tuesday repeating a request for a number of its debt payments to be deferred until April 2021.

Creditors rejected the original request, which is known as a consent solicitation.

There have “been a record four sovereign defaults in 2020. We expect Zambia to become the fifth following its ‘consent solicitation’ on deferring interest payments on Eurobonds until after March 2021,” said Ed Parker, one of Fitch’s top sovereign analysts.

Zambia’s bonds continued to fall on Thursday having slumped heavily on Wednesday as the stand-off between the government and private-sector creditors intensified.

18 COMMENTS

  1. Inevitable default courtesy of Lungu & Co.The writing of “debt strained Zambia” has been on the wall for long time since economically misguided PF came to power.

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  2. There has been too much negligence on government expenditure, it’s been wasteful. At the end of the day, all the debt the country has contracted has gone into people’s pockets. $27Billion is alot of money, if properly used. The money could have improved this country i.e. Health, School, Roads.

    As I conclude, read Matthew 6:5-7.

  3. There has been too much negligence on government, it’s been wasteful. At the end of the day, all the debt the country has contracted has gone into people’s pockets. $27Billion is alot of money, if properly used. The money could have improved this country i.e. Health, School, Roads.

    As I conclude, read Matthew 6:5-7.

  4. We’re just cursed as a nation. Not even a new administration can repair this economic crisis. The vast uneducated people Who happen to be the majority voters are clueless about this debt. And yet, they are the ones who decide who should be the Captain of the ship. A case of the blind leading the blind.

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  5. Those are your evil expectations or rather wishes. The western- influenced finch survives off the high unequal credit labelling of African states which is symbolic of the years of imperial oppression of the African continent. When Corona first came to be noticed, their western media expected or rather wished Africa to have millions of deaths. Well the devil is a liar, because fast forward to a few months, it’s in diaspora where they are dying like chickens in an abattoir

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  6. We will be the first African nation to default since Covid was discovered. What a great way to lead the way PF! Lining your own pockets while actively hating your own country , because we will be dealing with these shackles of debt for decades to come now. They can’t excuse this disgrace. You’ve ruined our beautiful nation.

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  7. Just wait and see the economic collapse…..

    If I was HH , I would leave the Zambians to be dancing their PF slogans and concentrate on bussiness.

  8. They’re always expecting us to fail. lf it was up to them, Corona would have wiped away the entire continent by now. But we have strength and powers on our side that they know nothing about. They will be hit with the element of surprise..

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  9. Many countries will default, Zambia is not unique. Global economy was in recess even before covid-19. Commodity prices crashed after covid-19, Angola is a prime example after oil lost about 80% of its value. That’s why China, G20 are deferring debt repayments. Fedson Yamba has told Eurobond holders that Zambia WILL default if an agreement is not reached like the way China has deferred its debts. This is just damaging speculation by Fitch who are clearly not in control of the major global economic decisions.

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  10. UNIP in 27 years and MMD in its first 10 years borrowed very wisely and cautiously.
    The amount of national debt was low ($8 billion) and contracted bilaterally with Zambia’s western lenders. Mwanawasa vigorously tackled corruption in the country , government spending and over $7 billion was completely written off.
    Then the PF criminals took over with ECL borrowing recklessly.
    Zambia is in big trouble

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  11. KZ . Consider answering this one question first before enganging in aspect of life. What is your perpose in life?
    Try to imagine you children, grandchildren in Zambia 30-40 years from now. Are we as a country building any foundation for them? would we look them stright into the eyes and say we did our part?

  12. KZ . Consider answering this one question first before enganging in aspect of life. What is your perpose in life?
    Try to imagine you children, grandchildren in Zambia 30-40 years from now. Are we as a country building any foundation for them? would we look them stright into the eyes and say we did our part?

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