- Goal Diggers
- Guest Diggers
Zambia’s debt worrying UK investors, says British envoyBy Stuart Lisulo on 24 May 2018
British High Commissioner to Zambia Fergus Cochrane-Dyet says UK investors’ number one concern is the country’s public debt situation.
According to brief remarks posted on the British envoy’s Twitter feed, High Commissioner Cochrane-Dyet stated that UK investors’ number one concern was the country’s public debt situation, and how the Zambian government intended to dismantle it.
Zambia’s external debt position has rapidly leaped to US $8.7 billion by the end of last year, up from US $6.9 billion by December 31, 2016, while domestic debt has ballooned to K50.9 billion as at March 31, 2018, compared to K38.6 billion in May last year, according to official Ministry of Finance data.
“In London meeting UK investors. Their No 1 concern about #Zambia? The debt situation: precisely how much & how #Zambian Govt will tackle it,” High Commissioner Cochrane-Dyet wrote on his Twitter page, Tuesday.
Zambia’s two Eurobonds issued in 2012 and 2014, worth US $750 million and US $1 billion, mature in 2022 and 2024 respectively.
The Zambian government is expected to make two bullet payments of the US $750 million in one single day in 2022, while also needing to repay the entire US $1 billion in another single day in 2024.
The third Eurobond issued in 2015 worth US $1.25 billion has a different structure and amortises in three equal instalments in 2025-2027.
Consequently, yields on Zambia’s 2027 Eurobonds have risen to 10 per cent for the first time in almost 18 months, exacerbating the pain for holders, with losses of 11 per cent this year.
Zambia’s dollar securities are the worst-performing in the Bloomberg Barclays Emerging Markets USD Sovereign Bond Index, which includes more than 70 countries, according to Bloomberg.
And according to renowned economist, Chibamba Kanyama, the rise in yields to 10 per cent is a sign that Zambia’s economy has caused anxiety among investors.
About Stuart Lisulo
Stuart Lisulo is an experienced journalist with a focus on business news.
Email: stuart [at] diggers [dot] news
- COVID-19 will trigger major global economic recession, warns World Bank - 25 Mar 2020
- Lungu holds nation address on COVID-19 at 11:30hrs - 25 Mar 2020
- Multichoice explains movie rental fee hike - 23 Mar 2020
- SAA scraps 162 flights in response to coronavirus - 20 Mar 2020
- Madison Financial Services to inject K70m into MAMCo - 18 Mar 2020
- Cabinet debates total lockdown (29,798 views)
- Sangwa asks Lungu to declare State of Emergency (9,464 views)
- Let’s sympathise with Lungu and help him, or we will all perish! (9,038 views)
- Zambia’s economy will take years to recover from Coronavirus - Siliya (8,376 views)
- Zambian student chased from Chinese University over suspected COVID-19 (6,679 views)
Subscribe for news email alerts
ArchivesApr0 PostsMay0 PostsJun0 PostsJul0 PostsAug0 PostsSep0 PostsOct0 PostsNov0 PostsDec0 Posts
- «March 2020»
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- COVID-19 cases rise to 29
- We’ve started mobilizing funds to fight COVID-19 – Ng’andu
- Justice Without Remedy? A Comment on the Constitutional Court Judgment in the Case of Kambwili v Attorney General
- Philosophy & Homosexuality
- Let’s sympathise with Lungu and help him, or we will all perish!
- Cabinet debates total lockdown
- What will be Mr Lungu’s achievements by 2021?
- Chitalu announces 6 more Covid-19 cases
- Zambia’s economy will take years to recover from Coronavirus – Siliya
- LCC not ready for COVID-19, says Mayor
- COVID-19 cases rise to 22
- Topstar removes Prime TV from its platforms
The News Diggers
Deputy News Editor
Send this to a friend