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IMF says Zambia won’t get any relief after current debt programme

Published

2 years ago

September 8, 2022

The International Monetary Fund (IMF) chief, Allison Holland on Wednesday revealed that the body does not expect any relief for Zambia after the end of a 2022-2025 debt programme.

The West African country that opted to bow out of a $42.5 million Eurobond repayment in 2020, is seeking $8.4 billion of debt relief from 2022 to 2025.

The IMF said on Tuesday in a report on the first African country to default on its debt in the pandemic era.

Holland said Zambian authorities outlined a goal to have a memorandum of understanding with the official creditor committee by the end of 2022.

“We don’t anticipate any relief for Zambia post-programme,” Holland said in an online media briefing.

“We expect the debt relief to be provided now will be sufficient to meet the need … of the goals that we have outlined,” she said.

“The memorandum of understanding will be a joint agreement and Zambia will have to reach specific bilateral agreements with all the bilateral creditors to operationalize it,” she said.

“The targets that we have set for the debt relief encompass the whole of Zambia’s debt,” Holland said.

Zambia became 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.

External debts are not as contentious in many African states as the discipline to expend the funds appropriately on development-centered projects, which has always been a course for concern amidst the nature of corruption that characterizes the political and public system in Africa.

Related Topics:DEBT CRISIS Featured Zambia

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Moroccan annual inflation rises to 0.8% in November

Published

1 day 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.

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

Published

2 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.”