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Chinese banks, Zambian officials hold debt negotiations

Published

11 months ago

February 3, 2024

According to the secretary of Zambia’s Treasury, Zambian officials travelled to China last week to talk about debt restructuring with representatives of the Chinese Export-Import Bank (EXIM) and a few Chinese commercial banks.

After its official creditors, notably China EXIM, rejected a preliminary restructuring plan for its Eurobonds in November, Felix Nkulukusa stated that Zambia was on track to achieve a new accord.

2020 saw Zambia’s sovereign debt default, and the G20’s Common Framework procedure for debt restructuring has been plagued by delays.

Debtor nations are expected to reach equivalent restructuring agreements with both commercial and official creditors under the framework.

The tentative agreement Zambia had struck with foreign bondholders in November was rejected by its official creditors, who said that more was required and that the agreement did not compare to the debt relief they had offered.

“We were in China last week. We went to meet with the private commercial creditors,” Nkulukusa told Reuters.
Earlier on Friday, at a public event on the economic outlook, he said, “We are on course. We are sharing our restructuring proposals, and we hope that sooner than later we are going to reach an agreement.”

Following the COVID-19 epidemic three years ago, Zambia experienced a recession as a result of its foreign debt default. The nation has since requested reorganisation from its bilateral creditors in order to stabilise its economy.

The International Monetary Fund estimates that at the end of 2022, Zambia owes China EXIM $4.1 billion and foreign bondholders $3.5 billion. It was due to other Chinese lenders about $1.8 billion.

Related Topics:Featured Felix Nkulukusa Zambia

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Moroccan annual inflation rises to 0.8% in November

Published

2 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

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.”