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Alba Iulia
Wednesday, January 20, 2021

Zambia ‘doing everything possible’ to avoid default –Finance Minister

Economy Zambia ‘doing everything possible’ to avoid default –Finance Minister

Zambia is doing everything possible to avoid a sovereign debt default later this week, including sharing information on its Chinese debt with creditors, its Finance Minister told Reuters on Monday.

Zambia, which missed payment of a $42.5 million coupon on one of its Eurobonds last month, has asked creditors to delay interest payments until April, a request that has so far failed to receive support from bondholders.

A 30-day “grace period” on the coupon payment expires on Friday.

“We’ll wait and see. We’re doing everything possible,” Finance Minister Bwalya Ng’andu told Reuters by phone.

“The discussions (with bondholders) are on a continuous basis.”

When asked whether Zambia had the resources to pay the coupon within the grace period, he said the southern African copper producer had committed to treating all its creditors the same.

Eurobond holders have cited Zambia’s lack of progress in talks with the International Monetary Fund and poor transparency regarding its borrowing from China as obstacles to them agreeing to its request to suspend debt payments.

Dr Ng’andu, however, said his government had shared requested information with creditors.

“We’ve given all the information that needs to be given concerning the Chinese debt,” he said

13 COMMENTS

  1. This means …delayed civil servant salaries and no drugs in the hospitals. Policemen will continue mounting fake roadblocks to earn a living.

  2. With my brother at helm of BOZ there will be no such thing as default. We had a governor who was loyal to upnd who it seems deliberately tried to sabotage our economy for political purposes. Now we are in safe hands with a very independent hard working governor.

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  3. All along we were being told that every thing is ok, in check , debt below default risk ……….

    Lungu is oblivious to this plight , he is busy going around zambia promising more roads and free handouts to any group he thinks can marshel votes for him ………

    You ain’t seen nothing yet with lungu incharge….

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  4. Just pay $42.5 million Eurobond debt to avoid further embarrassing Zambia. President Lungu bragged about securing a moratorium of one month delay to pay up. That month is gone pay up the debt today, even reserves at BOZ have been depleted up. Pay up if you have any spine. We, the Zambians want to know where the application of those huge borrowings have gone, all we see is the General Auditor’s Report misappropriations and stealing of funds. So, pay up creditors from the change that remained.

  5. We hope things can be done as soon as possible. My worry is Kwacha depreciating everyday. This is not good for the president at all. Ba Minister, can you please put short term solutions to save the currency. As long as the kwacha continue losing purchase power you have no chance to be in office next year ba PF. Look at salaries of Zambians. Companies are not increasing the salaries of Zambians. Everyday the prices are going up.If the trend persists It means Lusaka and Copperbelt votes will go to opposition. I’m so worried that if nothing is done PF will be buried next year .We need a tax force for economy recovery. Help the president bwana minister. You were entrusted to help him. Consult private sectors to help come out of this disaster.Save the party from losing .U want UPND to…

  6. It is unfortunate that there is economic crisis. But it is beyond anyone’s control. The Covid19 pandemic has derailed global economy. All the developed countries are facing the heat. We are not exception. It is the time to face the reality. I am with government in the time of crisis. I have full faith in the leadership. We shall come out of the crisis, soon.

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  7. Don’t lose hope sir. Everything is going to be alright soon. There is nothing to be worried about. This is just yet another low in our lives. Global financial crisis is something we can’t do anything about. The only option we have is, start working hard to repay the debts. If each and every Zambian gives his bit, the situation can definitely turn around.

  8. Have faith. There will be a way out of the crisis. Hope the stakeholders will consider the international situation and take decision accordingly.

  9. It is painful to see my country in such a situation. But at the same time, it is also a hard fact that this is not the fault of government. The current financial crisis is the result of the pandemic. There is hardly anyone can do much about it at this juncture. Our priority should be to revive the economy and do whatever it takes to achieve that.

  10. It’s time to show love and respect for motherland. It’s time to stand firmly behind the government, so that it can take any decision to protect the country.

  11. And yet the dollar has finally come of age. Its now reached adulthood at K21 to $1. From what Rupiah left at K4. And since you borrowed in dollars you will need five times more the amount of kwacha just to pay back the principal not counting interest.

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