(3 minutes read)
· Zambia is committed to fulfill its obligations as it prepares to seek a bailout from the International Monetary Fund (IMF)
· The nation is looking at some US$12.7bn in external debt
· According to the reckoning of the present government, the debts are much more than what has been officially stated by the earlier dispensation
Zambia is committed to fulfill its obligations as it prepares to seek a bailout from the International Monetary Fund (IMF).
President Hakainde Hichilema’s landslide victory in the election last month placed him in control of an economy with a “bigger hole” than he expected. Last year, the country became Africa’s first pandemic-era sovereign defaulter. The nation is looking at some US$12.7bn in external debt. According to the reckoning of the present government, the debts are much more than what has been officially stated by the earlier dispensation.
Analysts feel that an accurate picture of the nation’s debt may help remove a roadblock for talks with bondholders. They also feel that it may improve chances of a bailout deal with the IMF, a prerequisite for any debt restructuring. Zambia’s US$1bn in bonds will mature in 2024, rose 1.6% to 79c on the dollar London on Tuesday, the highest level since March 2019. In the meantime, Hichilema’s team is exploring to find out the veracity of various deals the previous government has entered into outside the approval of the Parliament.
