US applauds Zambia’s debt restructuring efforts

Published

2 years ago

June 22, 2023

The United States Treasury Secretary, Janet Yellen has applauded Zambia's effort at its debt restructuring deals with creditors, notably the International Monetary Fund (IMF) and China.






Yellen said she was encouraged "by progress on Zambia and I think debt treatment can move forward soon," ahead of a summit in Paris aimed at boosting crisis financing for poorer nations.






The IMF on Wednesday hinted that agreement around Zambia's debt restructuring could be reached "within a few days." A spokesperson for the creditor said in a statement on Tuesday that the IMF was "very encouraged by the significant progress being made in discussions between official creditors and Zambia on a potential debt treatment”.






Zambia's aspirations of restructuring its approximately $12.8 billion in external debt have been hindered by the key creditors' worries about the extent of relief that would be required.






"Delaying debt treatment hurts both creditors and debtors. It simply worsens the economic fundamentals and increases the amount of debt relief borrowers will eventually need," Yellen said.






The nation's Monetary Policy Council has increased the country's monetary policy rate by 25 basis points to 9.50% in an effort to sustain the economy amid the financial crisis.

Related Topics:Debt restructuring Featured IMF US YELLEN Zambia

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Moroccan annual inflation rises to 0.8% in November

Published

4 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.

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

Published

5 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.”