Solution To Eurobond Issue Will Be Found – HH

President Hakainde Hichilema has assured Zambia’s creditors that a solution will be found to the country’s Eurobond situation. Speaking at a meeting with bond holders in London last night, the president said he would listen carefully to their concerns and assured them that Zambia remained a good choice for trade and investment.  

“In order to grow confidence in our economy, this morning we met the Eurobond creditors here in London who congratulated us on a peaceful transition. We listened carefully to their concerns and had a fruitful conversation,” the president said.

“We stated that within our first 100 days, we are doing everything possible to stabilise the economy, create jobs and business opportunities for all Zambians. We further noted that we will attend to all creditors fairly. Lastly, we are glad to state that ultimately, a solution for the Eurobond creditor issue will be found and this consultative meeting was very important. We have resolved to work together to create a path forward,” he added.

In November 2020, Zambia defaulted on a $42.5 million interest payment for its Eurobonds, becoming the first African country to default on its debts in the pandemic era. In February of this year, the treasury was again unable to pay a $56.1 million coupon payment for a bond maturing in 2027.  

Upon President Hichilema’s election in August, the value of Zambia’s Eurobonds – estimated to be worth over $1 billion – jumped by 11% in reaction to the new president’s promises of economic reform.

On Thursday, Hichilema said his government would treat all creditors fairly and that the consultative meeting with Eurobond holders was important to resolve issues left by the previous regime.

A deal with the International Monetary Fund is seen by many as essential for restructuring Zambia’s debt obligations. On Thursday, representatives from the Ministry of Finance sat down with officials from the IMF to begin discussions over a potential extended credit facility. Finance Minister Situmbeko Musokotwane promised in his budget last week that a deal would be reached by the end of the month.