Zambia bondholders rejected a request by the country for a six-month delay in interest payments, which represents about $120 million of coupons, according to regulatory filings.
Consent had been requested from holders of Zambia’s dollar-denominated 5.375% notes due 2022, 8.500% notes due 2024, 8.970% notes due 2027
Zambia also faces the expiry of a 30-day grace period today, after skipping an interest payment on $1 billion of bonds due 2024 at the end of October
Zambia will be in technical default if it doesn’t pay the coupon by the end of today.
In a statement, Ministry of Finance confirmed that the Extraordinary Resolutions set out in the notices of the adjourned meeting of Zambia’s Eurobond holders dated 20th October 2020, which was subsequently held today, 13th November 2020, were not passed.
It added, “Accordingly, the modifications and waivers, including the deferral of interest payments due on each of the bonds during the period from 14th October 2020 until 14th April 2021, requested by Zambia will not be implemented.”
“While Government regrets that the bondholders did not approve the requests made by Zambia in good faith, we remain committed to finding a consensual and collaborative resolution to debt sustainability issues.”
“In light of the fiscal and economic challenges the country faces, Zambia will continue to engage in constructive dialogue and share information with the ad hoc committee of bondholders and all other creditors in order to agree a resolution that would gather support from all its creditors.”
It said Zambia also remains resolute to adhere to the principle of transparency in its engagements with the creditors.
“Further, we are confident that as Government continues to share information with all creditors, including the committee’s advisors, there will be an appreciation that agreeing to consensual standstills or accruing arrears are the only options available to the country while we design a plan to put our debt on a sustainable trajectory.”
And Economist Chibamba Kanyama says the outcome was anticipated.
And Respected Economist Chibamba Kanyama has that this is not surprising as it was anticipated.
“The question now is: will government pay the due amount or default?”
Mr Kanyama said Minister of Finance Bwalya Ngandu’s statement is not clear on the matter.
“However, put in context, and based on the Veep response in parliament today, the government will not default. It is in the interest of every citizen that the government pays and we should support that move,” Mr. Kanyama.
The problem is you have a president who comes from a compound and thinks he his dealing with illiterates like is Pathetic F.ools
Ati am not ashamed of the debt no country does not borrow…
Countries borrow and payback baba…
Ati humble leader yet as clueless as a grade 7
Zambian default is inevitable thanks to the most clueless economic managers the country has ever had since 1964. Lungu now has a dubious distinction .
Zambia is insolvent. The solutions is not to ask lenders for delay in interests payments but to reduce spending and curb the theft of public funds on the part of government. Clearly, the bond holders are not interested in any stories.
Zambia is insolvent. The solutions is not to ask lenders for delay in interests payments but to reduce spending and curb the theft of public funds on the part of government. Clearly, the bond holders are not interested in any stories.
I hope they are able to continue paying off the debt instead of on handouts. It will take some otherworldly juggling skills to continue paying off debt, run the government and carry on with 11th hour Bribery Handout Schemes. The people will give the mandate to whomever they want to renegotiate the debt. I am sure the bondholders will be willing to listen to someone with a 5 year mandate. Really, they will have little choice.
If you can find a $1 million bucks for 4×4 and decide not pay your debt first its government leadership decision. Two words explains the whole debt circus by this government “MORAL HAZARD”. Lungu and his cronies expect the debtors to bail them out.
Very sad state of affairs
What do you expect. We the Zambian people put a thief in charge of a country with no vision
In return this man has amounted wealth beyond comprehension.
Zambia is doomed
Well, the writing has always been on the wall.
Do not pay them a cent!! We ill survive as usual!
Why are these f00ls behaving as if we owe them $1 trillion. I would urge the government to pay off this debt as soon as possible because these loan sharks are trying to convert a few millions into huge sums and hold us to ransom. The timing is very suspicious. Which country in the world is debt free today? They want regime change to usher in their puppet to maximise on their returns. We should never do any deals with the west if we cherish our freedom. These are nasty organisations hell bent on destabilising Africa.
WELDONE BOND HOLDERS AND THANK YOU FOR REJECTINTG THE RESCHEDULING
PERHAPS OUR GOVENMENT WILL LEARN TO CONTAIN THEMSELVES
Some of us knew this more than 6 years ago…….
As soon lungu started his brutal assults on democratic freedoms of the opposition , the writing was on the wall…
The assults on the opposition by lungu were the main pointers that he was clueless…..and would only cling on to power by way of violence and intimidation than merit…..
Were is Mushota PHD holder, Sharon and Br Mumba to say ‘Let’s roll’…..
But the Veep says otherwise, i thought shes well informed, or maybe she wanted to give people false hope.. Our future generation will not forgive this crop of leaders
We warned you not to borrow recklessly, prevarication has time limit now pay. Even moratorium come to an end. Ba president Edigar Lungu is a lawyer and perfectly understands these arrangements well. And its embarrassing if multilateral and cooperating partners realise Ba Lungu has a legal background. So, he should just pay to avoid further embarrassment.
Mwamona nomba ba seleni twibeko…we want the humble one to address the nation on this matter.
I personally hold the Army Police and the Judiciary responsible for the huge debt Zambia has contracted because I warned them in 2014 not allow PF continue rulling Zambia. But they never listened. They allowed their commanders to accept bribes from Lungu instigated by Kaiser to stay mute about the election rigging and the ugly situation unfolding under clueless Lungu and Kaiser.
Now they are paying the price. Under PF they will retire without pension infact without a penny show for their hard work.
Ifyakuifwaila bane.
Had the army acted and stopped PF s rigging schemes like Malawi has done the situation,€ would have been different.
Lungu must go by any means possible.