Zambia’s main opposition leader said that creditors would have to face losses while negotiating a debt restructuring, given that the African nation would not be able to secure an IMF bailout before elections in August. The opposition leader said that a 20% haircut/loss is a good starting point following Barclays’ forecast that creditors including Eurobond holders would exit the restructuring with a 20% haircut. The IMF had said earlier this month that it has made significant progress with Zambia and talks would continue. Zambia’s external debt stood at $12.74bn as at 2020 end with ~$3.5bn outstanding to Eurobond holders. “We would go to the table with clean hands, with credibility… There has to be a haircut. It has to be equitable. We don’t want one group of creditors holding debt stock to cross subsidize another”, said Hakainde Hichilema, president of the United Party for National Development.
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