Zambia Says Can’t Make Debt Payments if Standstill Not Agreed

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Zambia Says Can’t Make Debt Payments if Standstill Not Agreed
2020-10-13 16:04:23.198 GMT

By Matthew Hill and Taonga Clifford Mitimingi
(Bloomberg) — Zambia has told creditors including Eurobond
holders that the government won’t be able to meet its
obligations if they don’t agree to its proposed interest payment
holiday.
The government announced last month it was seeking about
$120 million in deferrals from holders of its $3 billion in
Eurobonds for six months, while it works on a debt-restructuring
strategy. A $42.5 million payment on $1 billion of dollar bonds
due 2024 is scheduled for Oct. 14.
“Should Zambia fail to reach an agreement with its
commercial creditors, including holders of its Eurobonds, on the
terms of the appropriate standstills, as previously stated, the
Republic with its limited fiscal space will be unable to make
payments and, therefore, fail to forestall accumulating
arrears,” Fredson Yamba, the secretary to the Treasury, said in
an emailed statement on Tuesday.
Eurobond holders are due to meet on Oct. 20 to vote on the
proposal.

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