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Zambian govt clarifies IMF’s stance amid controversy over debt restructuring talks

Published

1 year ago

November 16, 2023

The International Monetary Fund (IMF) has not changed its stance on Zambia’s debt restructuring agreement, according to Zambia’s Ministry of Finance and National Planning.

The Memorandum of Understanding (MoU) signed in Marrakech in October 2023 and the agreement reached with the Official Creditor Committee (OCC) in June 2023 remain on track, according to the Office of the Secretary to the Treasury.

The Ministry, in its clarification on Wednesday, did admit, though, that there had been misunderstandings regarding the IMF’s position. It emphasised that the rumours were unfounded, and reaffirmed its commitment to the earlier agreements.

Zambia’s major creditor, China, earlier this week called on the country’s other creditors to shoulder a “fair burden” amidst Zambia’s recent push for debt restructuring. The call comes after the IMF and official creditors “expressed reservations” over a deal Zambia struck with overseas bondholders.

The ministry stressed that during the debt restructuring process, it would always act in the nation’s and its economy’s best interests. The government reassured Zambians and visitors that they were assiduously striving towards a resolution that was agreeable to all parties, despite the difficulties and concerns expressed.

Additionally, it emphasised how crucial it was to keep things confidential during these talks. Non-Disclosure Agreements (NDAs), which follow customary international legal practises for such engagements, govern discussions with the Bondholders Committee, it says. This means that until the talks are over, specifics about the conversations cannot be shared.

The ministry held talks with representatives of the IMF and the Official Creditor Committee last week in which the creditors voiced concerns about Zambia’s agreement-in-principle that was made with the Bondholders Steering Committee last month.

Zambia has re-engaged with the Ad Hoc Creditor Committee of Bondholders in response to these reservations, and talks are actively proceeding.

Being the first African country to default on its debt during the coronavirus pandemic, Zambia has struggled, especially around the country’s debt burden and complications with negotiating a way out with creditors like China, its biggest foreign creditor.

Related Topics:debt burden Featured Zambia Zambia's Ministry of Finance

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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

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.”