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Saturday, January 16, 2021

Zambia In Danger of Defaulting on Foreign Debts

Zambia is on the verge of defaulting on foreign debts if it could not post its interest payment due on Friday.

Zambia is on the verge of defaulting on foreign debts if it could not post its interest payment due on Friday. 

After missing its interest payment of more than $40 million last month, Zambia faces the end of its grace period on Friday if it does not settle its due payments of $3 billion Eurobonds. 

The South African nation has asked for a delay of six months, which has yet to be decided by bondholders. 

Zambian Vice-President Inonge Wina said that the country will not default its payments to its creditors. “Zambia is not ready to default, Zambia will not default on her payments,” Wina insisted. 

Amidst the pandemic, the country is facing a foreign debt amounting to $12 billion.

“It is simply immoral for bondholders to demand full repayment and to make huge profits on Zambia’s debt while the country struggles with COVID-19, a major economic crisis and spiraling poverty levels,” said Sarah-Jayne Clifton, director of the Jubilee Debt Campaign, a UK-based organization researching global debt issues and working with indebted countries for solutions. 

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