Finance Minister Hon. Dr Bwalya Ng’andu has said that Government remains committed to pursuing a constructive and very transparent dialogue with all its creditors including bondholders.
He emphasized that the government will not relent in its efforts to find a consensual and collaborative resolution to debt sustainability issues.
“Government is strongly committed to pursuing a constructive and very transparent dialogue with all its creditors including Bondholders to define a new cooperative and orderly process to put the debt back on a sustainable trajectory and thus be able to get out of the default situation.” Said Dr Ng’andu.
And further, the Minister has clarified that the Vice President’s statement in parliament as to whether or not Zambia will default on the payment of its coupon obligations to Euro Bond Holders has been misunderstood by some sections of the public.
The Minister holds the position that the Vice Presidents response in parliament reflected optimism that the Bond Holders would consider favourable the country’s request and continue with collaboration.
“There has been a misunderstanding on what Her Honour the Vice President said in response to a question in Parliament whether or not Zambia will default on the payment of its coupon obligations to Euro Bond Holders.
Her response reflected the optimism that the Bondholders would consider favourably our request and continue with collaboration, in which case the question of default does not arise.” said Dr Ng’andu
“However, since the decision is now known that they will not support the standstills or Consent Solicitation, and given the precarious fiscal position that requires us to treat all creditors pari-passu, Zambia would, unfortunately, have no other alternative but to accumulate arrears.” Dr Ng’andu added.