Tag: debt restructure
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Bondholders Reject Zambia’s Request to Delay Repayments Due to Concerns Over How Much Government Owes China
Zambia's burgeoning debt crisis got a whole lot worse on Friday after a committee representing bondholders rejected the government's request for a six-month repayment holiday on about $3 billion of Eurobond notes. The committee represents 14 international financial ...
China, Bondholders, and the Worsening African Debt Crisis
The debt crisis in Zambia got a lot worse this week after bondholders refused the government's request for a 6-month repayment delay. Those private creditors said they're frustrated by the government's lack of transparency about the total amount of debt ...
G7 Finance Ministers Openly Frustrated With China on Debt Relief
Debt relief for developing countries is emerging as the latest front in China's rapidly escalating confrontation with the U.S, European countries, and Japan. Finance ministers from many of those countries, representing the Group of 7 (G7), met on Friday to discuss debt relief initiatives for ...
First, Zambia Defaulted on Part of Its Debt, Then Came the Credit Downgrade, Now the Question is What Will China Do?
Zambia's financial situation is rapidly deteriorating following last week's announcement by the government that it would default on $3 billion of Eurobond debt. Soon after, the credit ratings agency Fitch downgraded Zambia's foreign-currency bonds, immediately increasing the cost of borrowing for Lusaka. ...
Is Default the Next Step for Kenya’s Embattled Standard Gauge Railway?
The Chinese-financed and built Standard Gauge Railway is losing money at an unsustainable rate of $9.2 million per month prompting renewed calls in parliament for the State House to renegotiate the $3.2 billion of loans used to construct the Nairobi to Mombasa ...
China Faces a Critical Test in Kenya
Kenya's difficulties in servicing its debts for the newly-built, Chinese-financed Standard Gauge Railway (SGR) is nearing a breaking point. Even before the COVID-19 outbreak, the railway failed to meet passenger and cargo volume targets and now the economic downturn brought on by the ...
As Eurobond Investors Boo Zambia, They’re Now Cheering For Angola
While Zambia is getting pummeled by investors for signaling that it'll have to delay some Eurobond repayments, Angola is enjoying the opposite following bold reassurances from Osvaldo Joao, the state secretary for finance. "“We will always pay,” he told Bloomberg on Monday. ...
China-Angola Debt Restructuring Deal Close Says Senior Official
The Angolan government is reportedly close to finalizing a deal with Chinese creditors to restructure the $20.1 billion of debts that Luanda owes Beijing, according to an unnamed senior government official quoted by Reuters. This is one of ...
The IMF’s New $1 Billion Loan Package for Angola Shows Just How Little We Know About What’s Going on Behind the Scenes
The International Monetary Fund's Executive Board said on Wednesday that it will immediate disburse $1 billion to Angola to help ease the country's worsening financial crisis. What's surprising about the announcement is that until now, the IMF had indicated that it wanted to wait until ...
Malpass Surprised Over Lack of Progress on Emerging Market Commercial Debt Relief
World Bank President David Malpass called on governments, including China, to pressure their countries' private creditor institutions to do more to help alleviate debt pressures in emerging markets. Malpass is apparently surprised that investors are continuing to extract profits from vulnerable ...
Africa to G20 Members: Pay a Little Now or Pay a Lot Later
When things fall apart no one will be able to say they didn't see it coming. Last year, when we spoke with Ghananian conservationist Kofi Agbogah, executive director of the NGO Hεn Mpoano, for the ...
Cobus van Staden Has a Warning For Rich Countries: Either You Pay Now to Help Africa With COVID-19 or You Will Pay Later
Cobus van Staden, the senior China-Africa researcher at the South African Institute of International Affairs in Johannesburg and co-founder of The China Global South Project, published a sharply-worded commentary that condemned the international community's response to the COVID-19 as "woefully naive."