News & Analysis: Zambia

Creditors fume as the beat goes on

“After the default, the bondholders and Chinese creditors are jostling for priority but secrecy and local politics are blocking a credible solution.”

via Africa Confidential

As new debt crisis looms, Africa needs more than world is offering

“African countries face another debt crisis and will need more long-term help than the latest G20 debt plan offers them to ward off trouble ahead and keep much-needed investments coming in, according to policymakers, analysts and investors.”

via Reuters

The ‘blood, sweat and tears’ behind Zambia’s default

“When Zambia sold the last of its three US dollar bonds in 2015, it capped a decade in which the copper-endowed African country went from needing debt relief reserved for the world’s poorest nations to tapping the global capital markets with ease. But just five years later, that bond is in default, with the rest of Zambia’s $3bn international bond borrowings.”

via Financial Times

Africa’s First Pandemic Default Tests New Effort to Ease Debt From China

“A new framework to resolve debt crises in developing countries, meant to ensure that Chinese and private creditors share the burden of providing relief, faces a key test after Zambia became the first African nation to default during the coronavirus pandemic.”

via Wall Street Journal

Zambia’s Debt Default: A Lose-Lose Situation

“Some of the world’s poorest countries don’t have the liquidity available to keep their economies afloat, tackle the emergency COVID-19 response, and provide social safety nets for the most vulnerable. This is the case with Zambia.”

via Africa.com

Derivatives committee asked to rule on Zambia debt non-payment

“A credit derivatives committee has been asked to rule whether a ‘failure to pay’ credit event has been triggered by Zambia, paving the way for a potential payout for holders of default insurance on the country’s sovereign debt.”

via Reuters

Zambia’s default shows new approach needed for Chinese debt

“Zambia’s debt default shows that Western lenders need to develop new ways of factoring existing Chinese loans into their decisions. In essence, the long-term consequence of Zambia’s default may be to deter Western lending to countries where China is already a creditor.”

via The Africa Report

Derivatives committee asked to rule on Zambia debt non-payment

“A credit derivatives committee has been asked to rule whether a ‘failure to pay’ credit event has been triggered by Zambia, paving the way for a potential payout for holders of default insurance on the country’s sovereign debt.”

via Reuters

Zambia debt crisis just the ears of the hippopotamus in Africa’s perilous fiscal position

“Zambia’s debt crisis is part of a much bigger affliction facing many sub-Saharan African countries which have been sinking in sovereign debt since the financial crisis of 2008. Persistent systemic governance and economic challenges accompanied by external shocks have led to a rise in the continent’s indebtedness.”

via Daily Maverick

A future COVID-19 African debt crisis?

“This week, private sector lenders rejected Zambia’s request for a payment holiday, and by doing so fuelled concerns that ‘Africa’ would be falling into a debt crisis.This kind of action and speculation is highly problematic. Not only does it label Africa’s 55 countries as one, it also appears to be based on information that is contrary to data and cannot be rationally explained.”

via Development Reimagined