IMF DEAL IS STILL VERY ACTIVE

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IMF DEAL IS STILL VERY ACTIVE

It is not true that Zambia’s IMF program has collapsed or there is a U-turn. That is far from the truth.
Zambia’s debt restructuring process is based on the G-20 common framework. It entails that there must be comparable treatment amongst the lenders (meaning that their losses must be within a similar threshold/scope.
With the bilaterals ( IMF, China, India and others), we agreed 40% haircuts, the bondholders ( Eurobond) want 33%.

IMF and the bilaterals feel that’s not ideal and want the bondholders to give a better deal of atleast 40% or slightly below.

They haven’t U-turned, they simply want favorable treatment, that way, it doesn’t jeopardize the IMF program.

GRZ is continuing discussions with the bondholders, so, how then does one say IMF has U-turned?

(C) THE FALCON

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