ActionAID Concerned With Zambia’s Worsening Financial And Economic Prospects
By Logic Lukwanda
Action-aid Zambia is concerned with the latest developments over worsening credit ratings with dwindling prospects to attract future financing and consequences and penalties arising from the Eurobond debt default.
Zambia defaulted on its interest payments on the US$3 billion Eurobonds as of Friday 13th November 2020 after bondholders rejected government’s request for six months interest payment relief.
And Nalucha Ziba the Action-aid Zambia Country Director says Fitch ratings, a credit rating agency already downgraded Zambia to almost junk status after the government sought to delay interest payments to bondholders in September 2020 and this puts Zambia in an awkward position to attract sustainable foreign investment which response to the economic needs of the country.
She says that with a poor credit rating this will affect investor confidence and eventually lead to capital flight and further weaken the economy by the possible contraction of the Gross Domestic Product –GDP- as well as currency depreciation.
Mrs Ziba is also calling for transparency on Zambia’s debt to China and the conditions involved.
PHOENIX FM NEWS
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