Trouble in Paradise-IMF Rejects Eurobond Deal
The International Monetary Fund (IMF) and other bilateral partners have rejected Zambia’s proposed debt restructuring settlement with the Eurobond bondholders.
Zambia obtained $3billion Eurobond commercial loan which now stands at $3.8billion.
Government announced recently that it had reached an agreement between the steering committee of the ad hoc creditor committee of Eurobond holders for the three Eurobonds maturing in 2022, 2024 and 2027 to bring the restructuring near to closure.
The proposed debt exchange entails an 18% haircut to bondholders’ current notional claims of over USD3.8 billion.
IMF says this very expensive and has proposed instead a 40% haircut.
Once Zambia has reached an agreement with creditors on restructuring its Eurobonds and assessment is done that it has completed that restructuring process, it would be moved from its Long-Term Foreign-Currency Issuer Default Rating (LTFC IDR) out of ‘Restricted Default’ (RD) and credit rating agencies will assign a rating based on a forward-looking assessment of the sovereign’s willingness and capacity to honour its foreign-currency debt obligations.
As with the June agreement with the Official Creditor Committee (OCC), the deal included a contingency element offering benefits to creditors.
The remaining claims were restructured into two bonds, one of which has a step-up in payments and an earlier maturity.
The IMF confirmed in July that implementing the Official Creditor Committee agreement and a comparable agreement with private creditors (Eurobond and others) would enable Zambia’s debt to be assessed as sustainable, with a moderate risk of debt distress over the medium term, under both the baseline and upside scenario.
Paris Club as lenders in the last decade—agreed to coordinate to provide debt relief consistent with the debtor’s capacity to pay and maintain essential spending needs.
But so far, only three countries—Chad, Ethiopia, and Zambia—have made requests for debt relief under the G20 Common Framework.
The Framework is the only multilateral mechanism for forgiving and restructuring sovereign debt.
However the G20 Debt Service Suspension Initiative (DSSI) which has allowed Zambia and 38 other countries not to service their debt since December 2020, will expire at the end of this year forcing participating countries including Zambia to resume debt service payments.
Written by; Amb. Emmanuel Mwamba
But Mwamba you’re a worst full
Aikona man, why can you not counter what he has written? Are there no intellectuals in UPND?
Muli fikopo sana.
But this idiot needs some sort of treatment. You are the same criminals that shit this euro bond crappie but now you all acting like fools that have had no idea where this came from and yet the payment default started by you assholes.
Oppositions shouldn’t just be celebrating failures if the government instead, they should be mounting political pressure to ensure success is achieved by whoever is representing us. That’s basically our work.
We’ve put boxer HH in the ring because he miraculously proved to us that he knocked out all his opponents in Bweengwa and claimed to have been trained by the pioneers of boxin themselves.
So whenever he’s in the ring with the mighty hunger and corruption, our work is to mount pressure on him so that he defeats them. When punched on the eye we shouldn’t celebrate but be worried that our boxer will have to fight with one eye. Our money is at stake here.
Mr. Mwamba, who borrowed the 3 billion Eurobond? Was it not you and your fellow Alebwelelapo thieves?
Please shutup and spare the Zambian people.
Seriously some people have no sense of shame. Mr. Mwamba is celebrating the failure to restructure a debt which the government he belonged to carelessness contracted without any plan of how they would repay it back.
Surely can a normal person celebrate such when they are the cause of the same problem? If PF did not contract this debt, we would not even be talking about it.
PF criminals lost senses after over borrowing
I don’t think a sane person can take delight in such a thing.
So this man is happy??lol I thought he is a normal person but now I realise just how shallow minded PF leaders were!!lol
On whose watch was this debt accrued?.
It’s actually shocking to say the least!!!someone is buy trying to restructure the debt you accrued he encounters handles you celebrate???arebyou normal?
Very sad to have such people like Mwamba even aspiring to be president. His PF party gets the country in the debt crisis. They try for years to talk to lenders but no one takes them seriously. Then UPND comes and begins to address the debt crisis with fair results. A problem arises on the sovereign debt agreement, and Mwamba gets ecstatic. Let those with sober minds judge the type of opposition that we have in Zambia
Mr Bleach should not even use the term ambassador rather IDIOTIC BLEACHED MWAMBA
Mwamba does not give a toss for Zambia
All he is interested in is his own glory. To be president of this country. Who caused the debt that you are rejoicing about. All you think of is the fall and failure of HH. Shame on you and your party.
For me, Emmanuel Mwamba is the most foolish and un-patriot person I have ever listened to!!! How can Emmanuel Mwamba be happy over such negative information when it is his foolish party through their new President Miles Sampa who got these Euro-bonds on behalf of Zambia?? I have lost even the least respect I had for Emmanuel Mwamba.
Emmanuela mwamba is a big fool who doesn’t understand what he stands for. This money was gotten by pf as a loan and today he’s celebrating the failure of government to pay what they got. Zambians will suffer because of reckless borrowing by his party
These are the people Lungu was appointing to Ambassadorial positions! It’s when you see that we had these calibre of people with their appointing authority, you realise we had criminals running government for 10 years and what had happened with the looting, corruption, lawlessness was not a mistake but carefully planned and executed. Here they are making noise at alebwelelapo. How can a normal person knowing the created this problem be so excited about a draw back. As usual he runs with the story first before the full details are out. We have a duty to make sure all these crooks are sent to jail and don’t come an near to power again.
Wise people have spoken sense above, but as usual Imbushi ni mbushi, imbwa nayo ni mbwa, that is what PF idiots are and anyone who supports the madness exhibited by the Chief Idiot Mwamba. STUPID IDIOTS
In this country, we are Christians quite alright but there few people who don’t love this country at all. While some are praying day and night for its prosperity, others like the author of this article are busy praying for its downfall. Are these not the same people who squandered Eurobond and today, the same people are celebrating even quoting the same figures they failed to pay when they were due. Mr. Mwamba, try to think or ask yourself, suppose you did not default that time you did, was that figure still going to be $3.8 billion? What can you show Zambians today or what can you point at, where that Eurobond money was used? The answer is one word, nothing. When we tell you that the current economic challenges we have now are the long term effects of your careless fiscal management, you refuse although you are seeing for yourselves. It’s true that some people have no shame and they will never change. This country does not belong to HH, it belongs to all of us Zambians and problem should be of concern to all of us. Ba Ambassador, don’t celebrate on problems but try to joyfully find workable solutions.
Is he the Government spokesperson now?
No wonder I can’t support them. The organisation with no shame!!
He is at it again! The same f00l lied about a cancelled Summit.
Aba bamudala chipuba kanshi.He is even saying trouble in paradise!!!
Iam telling you iam shocked is this man a leader ??
If this is the calibre of leaders PF has they must never be allowed to get back to power again!!
These chaps want power just for the sake of it!!
This is why dollar is climbing on daily basis. Very soon getting to K25.
Why is this man so negative? This is sheer lunacy.
Mr Mwamba Emmanuel very excited of any hiccup under UPND. Who does that.
Evil minds.
You have brought suffering through your poor economy policy’s were your party then in Gvt failed to service the Euro bond and loans yet your blaming UPND for your failures your friends spending sleepiness time to stabilize the economy sure now I know why Michael Chilufya Sata sidelined you sure are you a Zambian who can rejoice on negativet iam now appealing to govt to go through out the country to tell Zambian s how they ruled this country by terror.
I’m happy that that all commentors above spoken my thoughts except one idiot supporting his kind.( Second commentor from above as usual)