VenturesNow

Zambia seals $3 billion international bond rework

Published

9 months ago

March 26, 2024

In a significant development that moves the nation closer to exiting its protracted debt restructuring, Zambia has announced that it has achieved an agreement with a consortium of private creditors on the restructuring of $3 billion of its foreign bonds.

According to the most recent agreement, Zambia’s three current instruments would be converted into two amortizing bonds, one of which would have higher repayment rates if the nation’s economic prospects and capacity to manage its debt were better.

“History has been made!” President Hakainde Hichilema said on social media platform X. “We are pleased to announce the agreement with our Eurobond holders.”

With some substantive changes, the nature of Monday’s proposal is similar to a preliminary agreement that was struck late last year but was later abandoned because official creditors, who include nations like China and France, rejected it.

Bondholders’ total claim against the country increased to $3.98 billion as a result of accrued unpaid interest; however, under the terms of the revised agreement, investors will get bonds with a face value of $3.05 billion, down from the $3.135 billion that was initially suggested in October.

Being the first African country to default on its foreign debt following the effect of the Covid-19 pandemic and has been keen on a restructuring of the debt. However, the lengthy delays in the process have hindered much-needed investments, slowed down economic growth, and put pressure on the regional financial markets.

After a proposal to restructure $3 billion in Eurobonds was rejected by its official creditors, Zambia struggled to restart its debt restructuring process. According to international media, China and other creditors did not think the proposed debt relief granted by the government matched that of the bondholders.

A terrible drought that has been labelled a national calamity and is affecting the production of food and hydropower has made the situation worse, although its currency, the Kwacha has been on the rise despite the odds.

Click to comment

VenturesNow

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.

VenturesNow

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.”