Zambia Requests Suspension of Debt Service Payment to Holders of US Dollar Debt for Six Months

Proshare

Tuesday, September 22, 2020 01:17 PM / By Republic of Zambia, Ministry of Finance / Header Image Credit: Lusaka Times

 

The Ministry of Finance (the "Ministry") of the Republic of Zambia (the "Republic") has announced a Consent Solicitation to holders of its (i) U.S.$750,000,000 5.375 per cent. Notes due 2022, (ii) U.S.$1,000,000,000 8.500 per cent. Notes due 2024 and (iii) U.S.$1,250,000,000 8.970 per cent. Notes due 2027 (the "Notes") to request the suspension of debt service payments for a period of six months from 14 October 2020, effectively covering the upcoming three coupon payments due on 14 October 2020, 30 January 2021, and 20 March 2021 on the respective Notes.

 

The Republic of Zambia is confronted with a very challenging macroeconomic and fiscal situation aggravated by the COVID-19 crisis that has severely affected the country's public finances. A combination of declining revenues and increased unbudgeted costs caused by the COVID-19 pandemic have resulted in a material impact on the Government's available resources to make timely payments on its indebtedness leading to increasing debt servicing difficulties.

 

This is the reason why the Republic of Zambia has taken the decision to apply for the G20 Debt Service Suspension Initiative in August 2020 and is requesting similar debt service suspension from its commercial creditors, including its noteholders.

 

The Government meanwhile continues to actively engage with the IMF to secure financial assistance within a programme of reforms that would help in stabilising the macroeconomic outlook of the country and restoring its fiscal balance. In this context, the Government is committed to finding a consensual and collaborative resolution to the debt sustainability issues it is currently facing.

 

Proshare Nigeria Pvt. Ltd.


Related to Zambia

  1. Zambia's Inflation Rate: A Justifiable Outcry For Policy Intervention
  2. Moody's Downgrades Zambia's Ratings to Caa2, Outlook Changed to Negative
  3. ZAMBIA- Greater Short-Term Stability Belies Continued Long-Term Risks
  4. Zambia's Potential IMF Deal May Face Further Delays
  5. Zambia - Further To Run In Easing Cycle
  6. The Zambian Kwacha to Recover on Steadily Rising Investor Sentiment
  7. Zambia's new president cancels bank sale amid shake-up

 

Proshare Nigeria Pvt. Ltd.


Related News

  1. Ghana's Economy: Real GDP Dipped By 3.2% YoY in Q2 2020
  2. Federal Reserve Issues FOMC Statement and Implementation Note from Its Sept 15-16 Meeting
  3. Sub-Sahara African GDP Growth: South Africa Report Fourth Contraction in Q2-2020
  4. Chinese Banks' Profit Decline to Worsen In 2H20
  5. What PMIs Tell Us About Economic Recoveries In Africa
  6. ESMA Sees High Risk of Decoupling of Financial Market Performance and Underlying Economic Activity
  7. China's Mega Banks Lost Billions of Dollars in Profit as Bad Loans Rise During Coronavirus Pandemic
  8. Ghana Provides Reflective Accounts of Events With Nigeria
  9. Africa's Travel and Tourism Industry: Is Recovery at Sight?
  10. SSA Economic Update: Sub-Saharan Africa: Between Lives and Livelihoods

Proshare Nigeria Pvt. Ltd.
READ MORE:
Related News
SCROLL TO TOP