LUSAKA (Reuters) -Zambia is not going to be paying its $750 million euro bond due in September till new phrases of fee are agreed between the federal government and bondholders, its Finance Minister Situmbeko Musokotwane stated on Sunday.
The Worldwide Financial Fund (IMF) on Thursday authorized a $1.3 billion, 38-month mortgage programme, a step taken after its major collectors China and France agreed in July to barter to restructure the southern African nation’s debt.
“The bonds fall due (however) we is not going to pay on this foundation. Let’s speak. Let’s agree on new phrases earlier than we will begin servicing,” Musokotwane advised native information channel ZNBC in an interview.
The negotiations with non-public collectors are prone to be powerful however Zambia has the assist of the worldwide group, the minister stated.
Zambia grew to become the primary African nation to default within the pandemic period in 2020, battling debt that reached 120% of its gross home product.
In addition to the $750 million euro bond, Zambia has a $1 billion euro bond due in 2024 and one other $1.25 billion euro bond due for compensation in 2027.
Musokotwane stated the federal government had agreed with the IMF to place in place measures to make sure Zambia is not going to fall again into unsustainable debt.