VenturesNow

Zambia’s Finance Minister, Musokotwane, calls for IMF programme to restructure international debt

Published

3 years ago

May 8, 2022

In the latest push to ease state’s debt burden, Zambia’s Finance Minister, Situmbeko Musokotwane has called for an orderly debt restructuring process for the country.

The minister insisted that a restructuring will be hard to achieve without an International Monetary Fund (IMF) programme.

Finance Minister Situmbeko Musokotwane said on Friday, as he confirmed China and bondholders would join negotiations.

The country’s debt profile has been spiraling in recent years owing to issues predating the pandemic, leaving creditors wrangling over who should take losses on loans.

Zambia opted to bow out of a $42.5 million eurobond repayment in 2020, becoming the first African nation to default on its debt in the Covid-19 era. The country was struggling with a debt burden of almost $32 billion, around 120% of its gross domestic product.

The Zambian President Hakainde Hichilema revealed last month during the first quarter 2022 Economic Conference in Lusaka, that China had come on board to commit and join other creditors in the country’s debt restructuring process.

By that, China, which holds $5.78 billion of Zambia’s debt, has offered to co-chair Zambia’s creditor committee at the meetings. South Africa and France have also offered to co-chair, South Africa’s finance ministry said.

The country’s creditors must now sit down together to agree on the debt relief they will offer, Musokotwane said.

“China finally agreed to come on board, to be part of the Common Framework. The other category of creditors, namely the bond holders have also expressed readiness to engage,” Musokotwane said.

Secretary to the Treasury, Felix Nkulukusa also revealed to journalist that Zambia is expecting a total of $564 million from the World Bank, of which $275 million in budget support will only be released when the IMF board approves Zambia’s programme,

Nkulukusa said Zambia expected further $654 million from the World Bank under another three-year programme starting in July this year.

Musokotwane had said Zambia’s debt restructuring process was “stalled” at IMF meetings last month, after the country secured a staff-level agreement on a $1.4 billion three-year credit facility with the fund in December.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”