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Zambia pushing hard for $15 billion debt restructuring – Finance minister, Situmbeko Musokotwane

Published

2 years ago

November 30, 2022

Zambia’s finance minister, Situmbeko Musokotwane has revealed that the Southern African country is pushing hard to complete the restructuring of nearly $15 billion of external debt in the first quarter of 2023.

The minister said the country is “in active engagement” with its largest bilateral creditor China.

Zambia opted to bow out of a $42.5 million Eurobond repayment in 2020 and is seeking $8.4 billion of debt relief from 2022 to 2025. The country has been on a quest to restructure its loans and rebuild an economy ravaged by mismanagement under previous administrations and COVID-19.

The minister said that China had sought clarification from the Zambian government and the IMF on their debt agreement.

“The Chinese… are asking (for) a number of clarifications, which we and the IMF are providing them,” Musokotwane said.

Musokotwane further revealed that the Export-Import Bank of China is representing all Chinese creditors in their restructuring negotiations with Zambia

The creditors include commercial banks, the Industrial & Commercial Bank of China Jiangxi Bank, and China Minsheng Bank.

He hinted at the country having potential new investors in Konkola Copper Mines (KCM) and Mopani Copper Mines (MCM).

“We are hoping that by the first quarter of next year we should be there with some of them. And also some of the new investments that are coming from the U.S. and other places,” he said.

Mining is a critical part of Zambia’s economy. In 2021, a whopping 79.5% of the country’s exports came from mining, with the sector remaining Zambia’s major productive industry. A total of 11.1% of Zambia’s Gross Domestic Product (GDP) came from mining, and 2% of the country’s national employment.

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IMF mission concludes 4th loan program assessment in Egypt

Published

1 day ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.