Zambia and Creditors to Restart Bond Restructuring Negotiations
9 months ago

Zambia and Creditors to Restart Bond Restructuring Negotiations

Hindustan Times  

Foreign investors are set to restart talks with Zambia officials on a deal to restructure $3 billion of global bonds, marking a potential turning point in the African nation’s years-long effort to lift itself out of default, according to people familiar with the matter. The sides are trying to reach a deal before next month’s International Monetary Fund meetings in Washington, D.C., but an agreement may come within days, one of the people said. Zambia’s dollar bonds due in 2027 have gained about 10 cents since the start of the year to trade around 71 cents on the dollar, according to indicative pricing compiled by Bloomberg. Zambia initially struck an agreement last year with the official group of government lenders that China and France co-chair to rework $6.3 billion in debt, and later reached a separate accord with holders of Eurobonds.

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History of this topic

Why the G-20 ‘Common Framework’ for Debt Relief Isn’t Helping Poor Nations
8 months, 2 weeks ago

Why the G-20 ‘Common Framework’ for Debt Relief Isn’t Helping Poor Nations

Bloomberg  

More than half of the world’s low-income countries are at high risk of debt distress or are already in it, and several have defaulted. But despite the world’s 20 largest economies having agreed in 2020 to a plan called the Common Framework to smooth the process of restructuring loans that governments could no longer afford to service or repay, progress …

Increasing G20 cooperation on debt and investment in Africa
1 year, 4 months ago

Increasing G20 cooperation on debt and investment in Africa

Hindustan Times  

Africa’s long-standing and difficult history with international capital can be attributed to a complex set of factors, including historical legacies, structural adjustment programmes and, most recently, Chinese investment. While Africa’s hard-won credit market access had been hailed as the key to boosting the region’s growth and development, countries now face significant challenges in their relationship with international capital, with profound …

Is a global debt bomb about to explode?
1 year, 5 months ago

Is a global debt bomb about to explode?

Al Jazeera  

The majority of low-income nations are on the cusp of a debt crisis, sparking fears of global contagion. “Every day we don’t deliver these things that are within our control, we are basically increasing the costs and the damage gets compounded.” The queue of countries seeking debt restructuring like Zambia is only growing. However, economists and debt-management experts say richer …

Debt-plagued Zambia reaches deal with China, other nations to rework $6.3B in loans, French say
1 year, 6 months ago

Debt-plagued Zambia reaches deal with China, other nations to rework $6.3B in loans, French say

Associated Press  

PARIS — Zambia and its government creditors, including China, have reached a deal to restructure $6.3 billion in loans, the French government announced Thursday on the sidelines of a global finance summit in Paris. The agreement covers loans from countries including France, the UK, South Africa, Israel and India as well as China — Zambia’s biggest creditor at $4.1 billion …

China must show it can play by world debt-revamp rules: IMF
1 year, 8 months ago

China must show it can play by world debt-revamp rules: IMF

Hindustan Times  

China, the biggest bilateral creditor to developing countries, needs to show it can operate within established international debt-relief processes for poor nations struggling to pay, the chief of the International Monetary Fund said. “China has been very slow to recognize that multilateral debt restructuring requires China to play by the rules that are already established,” Managing Director Kristalina Georgieva said …

India's G20 Summit: What Global Governance Dilemma Means for Modi's Leadership
1 year, 9 months ago

India's G20 Summit: What Global Governance Dilemma Means for Modi's Leadership

The Quint  

If the G20 finance ministers can break the deadlock, it could unlock restructurings in Sri Lanka and Zambia—those worst-affected by sovereign debt defaults, helping them with immediate aid while also renewing hope for other nations seeking desperate debt relief measures. A larger concern that stems from the gridlock seen in the way G20 functions is evident from the fact how …

Ukraine war is exacerbating fragilities in the global economy: G20 Ministers
1 year, 9 months ago

Ukraine war is exacerbating fragilities in the global economy: G20 Ministers

The Hindu  

At a meeting of G20 Finance Ministers and Central Bank Governors on Saturday in Bengaluru, most members called for a “complete and unconditional withdrawal” of the Russian forces from Ukrainian territory. “Most members strongly condemned the war in Ukraine and stressed that it is causing immense human suffering and exacerbating existing fragilities in the global economy — constraining growth, increasing …

Debt load may pose threat to nations: PM
1 year, 9 months ago

Debt load may pose threat to nations: PM

Live Mint  

Prime Minister Narendra Modi cautioned on Friday that unsustainable debt levels posed a threat to the financial stability of nations and called upon G20 finance ministers and central bank governors to work towards restoring stability, confidence, and growth to the global economy. International Monetary Fund managing director Kristalina Georgieva said on Thursday that the IMF, World Bank and India’s G20 …

Cancel Sri Lanka’s debt, global scholars tell creditors
1 year, 11 months ago

Cancel Sri Lanka’s debt, global scholars tell creditors

The Hindu  

Sri Lanka’s recovery from last year’s devastating economic crisis will need its creditors to “share the burden” of debt restructuring, leading global economists have said, calling all lenders to cancel the debt of the cash-strapped island nation. In a statement issued on Sunday, eminent economists and scholars world over observed that amid Sri Lanka’s crucial debt negotiations, “all lenders — …

Chad’s creditors close to agreeing debt relief: French official
2 years, 2 months ago

Chad’s creditors close to agreeing debt relief: French official

Al Jazeera  

Alongside Ethiopia and Zambia, Chad is one of three countries seeking debt restructuring under a G20 initiative. Chad’s creditors are close to reaching a debt relief agreement, which would be the first under a new G20 debt restructuring framework, a French finance ministry source said on Monday. Alongside Ethiopia and Zambia, Chad is one of the three countries that have …

'Country is bankrupt': PM Wickremesinghe says Lanka to present debt restructuring programme to IMF by Aug
2 years, 5 months ago

'Country is bankrupt': PM Wickremesinghe says Lanka to present debt restructuring programme to IMF by Aug

India Today  

Sri Lanka will present a debt restructuring programme to the IMF by August to secure a bailout package, Prime Minister Ranil Wickremesinghe told Parliament on Tuesday, but acknowledged that negotiations with the global lender were "more difficult and complicated" than in the past as the country is now "bankrupt." The IMF later said it has concluded “constructive and productive” discussions …

Sri Lanka needs to do more on debt restructuring before a bailout package is finalised, says IMF
2 years, 5 months ago

Sri Lanka needs to do more on debt restructuring before a bailout package is finalised, says IMF

The Hindu  

The International Monetary Fund on June 30 said it has concluded “constructive and productive” discussions with Sri Lankan authorities, but warned that the crisis-ridden island nation needs to do more on debt restructuring and step up structural reforms to address corruption vulnerabilities before a bailout package is finalised. Sri Lanka is going through the worst economic crisis since its independence …

Zambia says it will default on debt owed private investors
4 years, 1 month ago

Zambia says it will default on debt owed private investors

Associated Press  

LUSAKA, ZAMBIA — Zambia’s government said it would miss a Friday deadline to clear debt owed to external investors who rejected the country’s request for deferral of an overdue $42.5 million interest payment. The southern African country had to pay up by Saturday to avoid becoming the first African nation to default amid the coronavirus pandemic after repeatedly failing to …

G-20 agrees on framework for more debt relief amid COVID-19
4 years, 1 month ago

G-20 agrees on framework for more debt relief amid COVID-19

Associated Press  

DUBAI, United Arab Emirates — The Group of 20 nations, representing the world’s biggest economies, announced Friday that low-income countries hardest hit by the fallout of the coronavirus pandemic could potentially get an extension on their debt payments beyond mid-2021, and in the most severe cases, a debt write-off. The G-20 statement, released after a virtual gathering of the group’s …

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