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Zambia pushing to meet creditors as restructuring lingers

Published

1 year ago

December 22, 2023

Zambian President, Hakainde Hichilema, is lobbying his country’s official and private creditors to meet to resolve their differences over a restructuring proposal for $3 billion of international bonds.

A preliminary agreement to restructure the Eurobonds was rejected by Zambia’s official creditors, which include China and members of the Paris Club of creditor nations, last month, dealing a serious blow to the country. According to the official creditors, the International Monetary Fund-approved agreement with bondholders did not provide debt relief that was equivalent to what they were providing.

During the recently concluded COP28 climate summit in Dubai, Zambia’s Hichilema informed a news conference that he had discussed his country’s sluggish progress in restructuring negotiations with French President Emmanuel Macron.

Also on Wednesday, after the conclusion of its second review of Zambia’s Extended Credit Facility (ECF), the Executive Board of the International Monetary Fund (IMF) disbursed roughly US$187 million to the southern African country.

He stated on Friday that, “some official creditors felt that the private creditors were not yet at par with them” in response to their rejection of the deal.

Under the G20’s Common Framework process—instituted in 2020 as a reaction to the COVID-19 pandemic—debtor countries are expected to reach comparable restructuring agreements with official and commercial creditors.

Hichilema stated that a memorandum of understanding on debt restructuring had been signed by 98% of official creditors. “Investors are saying is this (the debt restructuring) going to happen? The delays are giving a push on inflation,” Hichilema said.

Zambia was the first African country to default on its foreign debt following the COVID-19 pandemic. It has continued to seek debt restructuring with creditors under the G20 framework.

Related Topics:Featured President Hakainde Hichilema 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.”