Home Business and Technology Fitch expects debt-strained Zambia to default in the coming months

Fitch expects debt-strained Zambia to default in the coming months

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Fitch

Fitch expects debt-strained Zambia to default in the coming months

Rating agency Fitch says it expected Zambia to default on its government debt in the coming months, has become locked in a row with its creditors over delaying some of its bond payments.

Zambia’s finance ministry issued a statement on Tuesday repeating a request for a number of its debt payments to be deferred until April 2021.

Creditors rejected the original request, which is known as a consent solicitation.

There have “been a record four sovereign defaults in 2020. We expect Zambia to become the fifth following its ‘consent solicitation’ on deferring interest payments on Eurobonds until after March 2021,” said Ed Parker, one of Fitch’s top sovereign analysts.

Zambia’s bonds continued to fall on Thursday having slumped heavily on Wednesday as the stand-off between the government and private-sector creditors intensified.

In Other News: Chishimba Kambwili taken to prison – Video

NDC leader, Chishimba Kambwili has been sentenced to two years imprisonment after being found guilty on one count of forgery and another of uttering a false document.

Magistrate David Simusamba has sentenced the NDC leader following a more than two hours judgement, in which he acquitted the accused of the allegation of giving false information to a public officer...watch video here