News & Analysis: Zambia

World Bank sees more countries in ‘deep debt distress’ this year

“Chad and several other countries are already in deep debt distress and more will join their ranks this year, given the severity of the global recession triggered by the COVID-19 pandemic, World Bank Group President David Malpass said.”

via Reuters

COVID-19 deaths detected in a systematic post-mortem surveillance study in Africa

“COVID-19 cases were under reported because testing was rarely done, not because COVID-19 was rare. If our data are generalizable, the impact of CV19 in Africa has been vastly underestimated.”

via medRxiv

Interview: Dr. Youssef Boutros-Ghali on COVID-19, Debt Sustainability, and Macroeconomic Policy in Africa

COVID-19 Africa Watch talks to Dr. Youssef Boutros-Ghali, former Finance Minister of Egypt and former chairman of the IMF’s International Monetary and Financial Committee, about the economic impact of the pandemic, the policy response, SDRs, and more.

via COVID-19 Africa Watch

China to cut back lending to Africa in the post-COVID-19 era

“Chinese infrastructure lending to African countries is widely expected to slow over the next 1-2 years amid mounting debt sustainability concerns. This would mark a dramatic change over the past twenty years when Beijing emerged as a key source of development finance that helped Africa close its gaping $100 billion-a-year infrastructure deficit.”

via The Africa Report

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

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

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

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