Monday, June 24, 2024

Government to delay the payment of the first Eurobond due this month

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The Zambian government is talking to its bondholders about postponing Eurobond payments due to the ongoing debt restructuring.

The first Eurobond, worth 750 million US dollars, is due this month, and according to Mukuli Chikuba, the permanent secretary in charge of budget and economic affairs in the Ministry of Finance and National Planning, the government will not make any payment.

Mr Chikuba stated that payments will not be made until new terms are agreed upon between the government and the bondholders during a press conference on the International Monetary Fund (IMF) program.

According to him, the government intended to get back in touch with the bondholders to make sure that the payment dates were postponed until the nation’s debt restructuring process was complete.

He said the government wanted to make sure that all creditors were treated equally.

Between 2012 and 2015, Zambia issued three Eurobonds: the first was for 750 million dollars in 2012, the second was for 1 billion dollars in 2014, and the third was for 1.25 billion dollars in 2015.

The first Eurobond was scheduled to mature in September 2022, and the government was expected to settle the second and third bonds in 2024 and 2025, respectively.

Last week, the IMF approved a new, 1.3 billion dollar extended credit facility agreement for Zambia, clearing the way for the southern African country to start working with individual creditors on a debt restructuring plan to address the country’s debt crisis.

10 COMMENTS

  1. Fruits of Panga Fraternity aka Tu Piyefu.
    That cash is hidden in pockets of 1mbeciles like B0wman & other lowlife.

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  2. The legacy of PF and lungu………….

    Without an iota of sense of how economics works………..

    It was manna from heaven………….a festival of looting and corruption

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    • Those who are scared of this legacy should nt have stood for elections. You knew what awaited you so stop crying over PF’s legacy. Work you didn’t get into office to enjoy

  3. This article should make the IMF and GRZ agitated with political parties unless they don’t care to exercise loosely.

    “He said the government wanted to make sure that all creditors were treated equally.” LT

    uncertainty at its finest.

    • The same PF are in the forefront condemning the govt obtaining an IMF loan when they got all this money and wasted…there is nothing you can point to and say that was built with EUROBOND loan.

  4. The legacy of Chikwandanomics and ECL’s lack of vision. We are now paying for the mismanagement and plunder of 10 years. Anyway, Lesa amipale ba Pompwe Front…

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    • Fossil Chikwanda is gone the foool made a run for it …they stole the loot their children are enjoying the fruits meanwhile we pay the price…Chikwanda was right when he called us lunatics.

  5. People who were in the forefront enjoying this money are either dead or enjoying life like Miles Sampa even on marriage number three and an army of out-of-wedlock children. Its our children paying for all this today through high taxes …there is nothing to show for these EUROBONDS.

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  6. Those who are scared of this legacy should nt have stood for elections. You knew what awaited you so stop crying over PF’s legacy. Work you didn’t get into office to enjoy

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