Tag: debt
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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 ...
One of Nigeria’s Elder Statesmen Reflects on Ties With China
Aminu Wali, 79, is long retired from a distinguished diplomatic career as Nigeria's envoy to China, the United Nations and a stint as the country's foreign minister. In a wide-ranging interview with the Premium Times newspaper, Wali reflected on the current state of ties with China and ...
Reaction to Zambia’s Eurobond Debt Default
News of Zambia's request to postpone payments on three Eurobond notes prompted immediate reactions from stakeholders in the financial services sector, economic policymakers and journalists. Here's a sampling of the reactions on Twitter: "Sad. It’s important to remember that (a) Zambia’s ...
Contrary to Popular Perception, Zambia’s Debt Problem is With Global Capital Markets Not China
Although China is by far Zambia's largest bilateral creditor, the total amount owed to Beijing is less than what Lusaka has to pay to Eurobond holders and various other private creditors. The outlook for 2022 is especially dire because sizable Eurobond repayments are due. ...
Ethiopia’s Ambassador to the U.S. Renews Urgent Plea for African Debt Relief
Ethiopia's envoy to the United States, Fitsum Arega, used the occasion of the United Nations 75th anniversary to renew a plea for urgent African debt relief that was first issued by Prime Minister Abiy Ahmed on March 24th.
Uganda’s National Debt Surged 21% to Offset the Downturn Brought on by COVID-19
The Ugandan government has significantly increased its borrowing in a bid to help mitigate the financial impact of the ongoing economic crisis brought on by the COVID-19 pandemic. The Central Bank on Tuesday said that in the period from June 2019 to June 2020, borrowing increase by ...
China and the Burgeoning African Debt Crisis
Over the last week we've reached two critical milestones that put the worsening African debt crisis into sharp focus: First, the good news. Angola appears to have reached an agreement with some of its major creditors at the International Monetary Fund ...
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 ...
Nigeria’s House Speaker Rallies Other Legislative Leaders Across Africa in New Appeal for Debt Relief
Nigeria's outspoken Speaker of the House of Representatives, Femi Gbajabiamila, is mobilizing his legislative counterparts in half a dozen other African countries, including Kenya, South Africa, and Ethiopia, to speak out on the need for immediate debt relief and even outright debt cancellation.
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 ...