

Zambia may seek longer to repay debts, finance – Minister
Debts
Zambia may seek talks with creditors to extend its debt repayments after reaching a preliminary deal with the International Monetary Fund (IMF) for a 1.4-billion-dollar facility, Finance Minister Situmbeko Musokotwane said on Tuesday.
Zambia, one of the world’s largest copper producers, became Africa’s first COVID-era sovereign defaulter in November 2020 after years of chronic government overborrowing drove its debt burden above 120 per cent of annual economic output.
Musokotwane also said in a speech delivered in parliament that Zambia’s current tax revenues were not enough to pay for government salaries and service debt.
“The heavy debt burden that Zambia carries is at the core of some of the serious socio-economic problems witnessed in Zambia in the last few years,” Musokotwane said.
The depreciation of the kwacha currency, rise in inflation to double-digits, and closure of some businesses were all consequences of excessive borrowing, he said.
Zambia has more than 14 billion dollars of external debt, including guaranteed loans to state-owned enterprises.
Of that, three billion dollars is Eurobonds, around 6 billion dollars is owed to Chinese entities and the remaining five billion dollars is a mix of commercial, multilateral, and bilateral borrowing.
The IMF and Zambia on Friday reached a staff-level agreement on a 1.4 billion dollars, three-year extended credit facility, bringing the country one step closer to a comprehensive debt overhaul.(NAN)
more recommended stories
Nigeria, Niger Republic Sign Agreement On Border Frequency Coordination
Nigeria and Republic of Niger have.
Nigeria, Niger Republic Sign Agreement On Border Frequency Coordination
Nigeria and Republic of Niger have.
President Buhari Names Federal Secretariat Complex After Justice Bage
He noted that the honour.
Buhari confers 115 Foreign Officers with Ambassador-in-situ
President Muhammadu Buhari has conferred the.
-
Gubio: Zulum Commissions 7 Capital Projects
The projects comprised of Government.
Group seeks transportation policies for elderly persons
GreenLight Initiative, a non-profit organisation, on.
-
Photojournalist’ bags one-year imprisonment for possession of hard drug
A “photojournalist,” Okon Sunday, has been.
Can Nigeria exploit Russia-Ukraine war to capture EU gas market
Following the instability in the European.
Wike To NDDC: Adopt Regional Development Approach
Rivers State governor, Nyesom Ezenwo Wike.
Air Force redeploys branch chiefs, AOCs, spokesperson in major shake-up
The Nigerian Air Force (NAF) on.
Leave a Comment