Tag: debt restructure
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Analyst: Zambia Owes More Than Double the $12 Billion to China and Other External Creditors
Zambia owes $27 billion to external creditors rather than the $12 billion figure that is widely circulated in the media, according to Brad Setser's reading of World Bank data on external debt. Setser, a senior fellow at the Council on Foreign Relations in New York, explained in ...
New AidData Research Explains Why China Isn’t Fully Participating in the DSSI and Not Interested in Seizing Assets
Bradley Parks, executive director of AidData, discussed the preliminary findings of a new investigation into the terms and conditions of Chinese loan contracts around the world. AidData researchers studied 83 Chinese loan contracts to 21 low-and-middle income countries. The contracts involved the ...
When It Comes to the G20’s DSSI, China’s Playing by a Different Set of Rules
There's an enormous disconnect between how the Chinese are approaching the debt crisis in poor countries and the expectations of the world's legacy donors. People like World Bank President David Malpass seem befuddled as to why China is not fully supporting ...
Zambia Gets an Unexpected Reprieve From Bondholders, But Serious Concerns About the Country’s Debts to China Persist
Zambia's private creditors gave the embattled country an additional three weeks to come up with a plan on how to resolve its burgeoning debt crisis. A group of bondholders would have voted yesterday on whether to accept the finance ministry's request for a 6-month repayment ...
China Finally Commits To “Equal Treatment” for All Zambian Creditors. But Why Did It Take Them So Long to Say So?
China's top diplomat for sub-Saharan Africa, Wu Peng, took to his new Twitter account at 8pm local time yesterday in Beijing, to reassure investors and other Zambian stakeholders that the Chinese government supports the principle of "equal treatment" for all creditors. ...
China’s Bumbling Debt Communications Hurts Africa
Even though China is a central actor in the burgeoning African debt crisis, it's often hard to tell. Chinese stakeholders in this unfolding drama are notoriously silent when it comes to communicating their positions and signaling to the markets and other governments as to what their intentions ...
G20 Agrees to Give Poorest Nations Just the Bare Minimum for Debt Relief
Finance ministers and central bankers from the Group of 20 wealthy nations agreed to a bare-bones debt relief package on Wednesday that will extend the G20's Debt Service Suspension Initiative (DSSI) by six months until June 2021. The group ...
Zambia’s Debt Demand Shows Limits of China’s Checkbook Diplomacy
Zambia’s request for blanket debt-service suspension from creditors edges the country closer to default and highlights the limitations of China’s debt diplomacy. The government has decided to ask all external creditors to agree to debt service suspension on the same terms, ...
G20 Finance Ministers Expected to Approve Multi-Billion Dollar Debt Freeze Extension For the World’s Poorest Countries
Finance ministers and central bankers from China, the United States, and other G20 countries are expected to release a communiqué on Wednesday, according to Reuters, which will extend the Debt Service Suspension Initiative (DSSI) beyond the end of this year. It's not clear, though, ...
Kenya Advised to Restructure Current Debts, Reduce Commercial Borrowing if It Wants to Avoid Default
The Washington, D.C.-based multinational NGO International Budget Partnership (IBP - it was formerly known as the Center on Budget and Policy Priorities) recently warned Kenya's National Treasury to take drastic measures in order to avoid the bottom falling out of the economy due to the ...
African Debt: At Some Point, the Hole Becomes Just Too Big to Fill
The rapidly deteriorating financial crisis in Lebanon provides a grim preview to other developing countries of what happens when the bottom falls out of an economy. After the government defaulted on its debt last spring, conditions spiraled downwards to the point where
New Report Sheds Light on How China Will Handle Its Loans to Poor Countries
The New York-based research firm Rhodium Group released a new report today that draws on an expanded data set of Chinese debt renegotiations with developing countries. The new report, "Seeking Relief: China’s Overseas Debt After COVID-19," provides insights into how China may be handling current ...