(LUSAKA TIMES) Zambia heads to showdown with Bondholders as vote on payment holiday request is on today October 20, 2020
COMMENT - Taking on Eurobond debt, to be paid back, at interest, instead of collecting a windfall tax on the mines was a crime. It was an act of corruption, to the detriment of the Zambian taxpayer and citizen. The response was gaslighting and vague promises about alternative incomes. I remember President Sata resetting the Kwacha to par with the US Dollar. Then all of a sudden, all SADC currencies were set to $0.06 - the Kwacha, the Namibia Dollar, the South African Rand all had the same exchange rate with the US Dollar. Now with the Eurobond debt, the Zambian Kwacha has fallen to 4 cents on the dollar. That is massive inflation - caused by the outflow of resources and hard currencies from the Zambian economy. That is neoliberal 'free trade' in action. There has to be an Umwertung Aller Werte to quote Nietsche, a turning away from big business 'capitalism' and towards Socialism. A switch from Supply Side Economics to Demand Side Economics. A copper/gold/diamonds based currency that holds it's value. - MrK
(LUSAKA TIMES) Zambia heads to showdown with Bondholders as vote on payment holiday request is on today
October 20, 2020
Headlines Zambia heads to showdown with Bondholders as vote on payment holiday request...
The clock is ticking for Zambia to convince reluctant bondholders to accept an interest-payment holiday while it works out a debt-restructuring strategy.
If investors refuse Zambia’s request for a six-month standstill in a key vote today, it may become the first African nation to default since the onset of the coronavirus.
That could set a precedent for how cash-strapped governments treat private and Chinese creditors.
Zambia is not making it any easier for bondholders to give it breathing space.
Days after the government said it didn’t have the cash, it skipped a $42.5 million coupon payment — only for Finance Minister Bwalya Ng’andu to tell lawmakers the Treasury could have paid if it wanted to.
That may leave investors doubting the government’s will to tackle its debt problems in the run-up to elections in August.
“Zambia may very well be the most prominent battleground that this tension between creditors plays out,” said Irmgard Erasmus, an economist at Paarl, South Africa-based NKC Africa Economics.
“Eurobond holders, in particular, are certain to use all the weapons in their arsenal to limit moral hazard to the rest of sub-Saharan Africa.”
Zambia skipped the coupon on the recommendation of its advisers, according to Dr Ng’andu.
“They were of the strong view and opinion that if we pay we were going to create a very hostile environment within which to negotiate with other creditors,” he told lawmakers Oct. 15. “Because, we would have departed from the principal of pari passu.”
A group that holds about 40% of Zambia’s $3 billion in outstanding Eurobonds has already said it won’t support the proposal.
The government has a 30-day grace period to make the interest payment it missed last week before a default event occurs, which would allow bondholders to demand immediate repayment of the principal.
Dr. Ng’andu, who started the job last year, needs to balance the competing interests of Eurobond holders and mainly state-owned creditors from China, to whom Zambia owes even more money.
Eurobond holders are demanding greater transparency and an endorsement from the International Monetary Fund.
Zambia says it is treating all creditors equally.
The government hired Lazard Freres as financial advisers in May to assist with what it called a liability management exercise of its then $11.2 billion in external debt.
The copper producing nation’s debt has since shot up to almost $12 billion, and a messy default is becoming increasingly probable.
Labels: DEBT, EUROBONDS, NEOLIBERALISM, WINDFALL TAX
posted by MrK @ 2:40 PM
1 Comments:
CUSTOM AUCTION IS UP AGAIN AND GRANTING ALLAFRICA THE PRIVILEGE TO OWN ANY VEHICLE AT AFFORDABLE PRICE CALL OR WHATSAPP FOR ANY OTHER PRODUCT'S AND YEAR
SOME CAR LIST BELOW.
Golf 5K ZWM __ 30K ZWM
2010 Corolla Sport 20K ZWM
2012 Corolla Sport 40K ZWM
Awoof 2009 Lexus RX350 35K ZWM
2013 Camry XLE - Back Vent AC - V4 - 40K ZWM
2001 Camry 5K ZWM
2003 Camry 20K ZWM
2005 Camry LE .20K ZWM
2015 Matrix 40K ZWM
2008 Toyota Camry 20K ZWM
2012 Camry Sport 30K ZWM
2005 mitsubishi galant 10K ZWM
2015 mitsubishi outlander 30K ZWM
2018 mitsubishi outlander sport 40K ZWM
Mitsubishi 3K GHS TO 90K ZWM
2014 Rav4 Sport 25K ZWM
2016 Honda pilot EX 30K ZWM
2012 Benz E320 25K ZWM
1999 Sienna 8K ZWM
2006 Lexus RX300 20K ZWM
Pegeout 406 Manual AC 10K ZWM
2012 Honda CRV EX 30K ZWM
2O15 Honda Accord 40K ZWM
2011 Corolla XLE - Alloy + Formica 30K ZWM
2015 Toyota LandCruiser 40K ZWM
2010 Corolla LE 30K ZWM
2016 RX350 45K ZWM with Mouse
2018 RX350 55K ZWM with mouse
202O Toyota Tacoma 90K ZWM
2013 Avalon Thumbstart 30K ZWM
2012 Avalon key 20K ZWM
2018 Avalon Thumbstart 40K ZWM
2020 Avalon Thumbstart 90K ZWM
2012 Pointiac Vibes 30K ZWM
2011 Benz E230 30K ZWM
2017 Sienna CE 30K ZWM
2016 Sienna XLE 30K ZWM
2016 Corolla Sport 35K ZWM
2010 Camry LE 25K ZWM
2011 Camry LE 25K ZWM
2018 Lexus GX460 55K ZWM
2015 Lexus ES350 .40K ZWM
2010 Corolla Manual 20K ZWM
2018 Acura MDX 45K ZWM
2015 Audi 30K ZWM
2018 Audi 50K ZWM
2020 Audi 90k ZWM
2018 Benz C300 40K ZWM
2017 Benz GL450 50, 000 ZWM
2018 Benz GL550 55K ZWM
OI8 Benz GLS 40K ZWM
2O2O Benz Gls 90,000 ZWM
2006 Rav4 .20K ZWM
Awoof 2008 Pilot 20K ZWM
2008 Pilot 20K ZWM EX
2009 Highlander sport 25K ZWM
2018 Highlander Limited 45K ZWM
2012 Rav4 EX Rev Camera + Thumbstart@ 30k ZWM
2008 Honda Accord 25K ZWM
2012 Camry XLE 35K ZWM V4
2013 Honda Accord 35K ZWM
2015 Honda Accord 40K ZWM
2013 Matrix 35K ZWM
2012 Honda CRV 25K ZWM
2003 Honda Element 20k ZWM
2008 Camry 30K ZWM
2016 Honda Ridgeline 50K ZWM
2014 Camry LE 50K ZWM
2013 Ford Edge SEL 30K ZWM
2014 Ford Edge SEL .30K ZWM
Fresh like toks 2013 Benz E200 40K ZWM
2012 RAV4 30K ZWM
2014 Kia Cerato 20K ZWM
2015 Benz GLK350 30K ZWM
2015 Range Rover evogue 90K ZWM
2OI8 Range Rover evogue 100K ZWM
2O2O Range Rover evogue 150K ZWM
2OI8 Range Rover sports 100K ZWM
2006 Quest 30K ZWM
2008 Kia Rio 30K ZWM
2012 TOYOTA Camry Xle 30K ZWM
2O12 TOYOTA Venza .40K ZWM
2O22 LEXUS GX460-100K ZWM
2O14 TOYOTA Venza 40K ZWM
2010 TOYOTA VENZA 30K ZWM
2O18 TOYOTA Corolla 60K ZWM
2O2O TOYOTA LandCruiser 90K ZWM
2OI8 TOYOTA LandCruiser 80K ZWM
2015 TOYOTA LandCruiser 40k ZWM
2020 TOYOTA FJ CRUISER 100K ZWM
2025 TOYOTA FJ CRUISER 100K ZWM
2O2O TOYOTA Prado 90K ZWM
2OI8 TOYOTA Prado 50K ZWM
2O20 TOYOTA RAV4 90K ZWM
2O20 MERCEDES BENZ G-WAGON 300K ZWM
2025 MERCEDES BENZ G-WAGON 500k ZWM
2O21 TOYOTA Hilux 100k ZWM
2OI8 TOYOTA HILUX 90K ZWM
2015 TOYOTA HILUX 70K ZWM
2O18 TOYOTA Bus 60K ZWM
Tipper Head 100K ZWM
2018 BMW X6 50K ZWM
2O20 BMW X6 90K ZWM
2025 BMW X6 100K ZWM
2O20 BMW X5 80K ZWM
2025 BMW X5 90K ZWM
TOKUNBO CARS ABOVE �
CALL OR WHATSAPP FOR ANY OTHER PRODUCT'S AND YEAR'S......DISTANCE IS NOT A BARRIER ....SHIPPING 100% UPON ORDER .....INTERESTED BUYERS SHOULD CONTACT THE STATE AUCTIONEER.CUSTOM OFFICER GABRIEL ESHIEMOMOH VIA☎️ +2348067399090 ☎️ ...
Post a Comment
Subscribe to Post Comments [Atom]
<< Home