Bondholders to forego $840M 

By Mwila Nsofu

Zambia’s Euro Bondholders will forego approximately 840 million dollars of their claims under the debt restructuring agreement.

The London Stock Exchange says the bondholders will also provide cash flow relief of approximately 2.5 billion dollars during the IMF programme period.

The respective weighted average maturity will be 15 years and 8-years under the Base Case Treatment and the Upside Case Treatment.

According to a statement, the present value concessions from the Bondholders at current market rates will be significant.

However, the exchange says concessions are necessary given the constraints faced by Zambia, and are essential to achieve the relief required under the Debt Sustainability Analysis to restore financial stability to the country.

Zambia clinched a debt restructuring deal with bondholders worth over 3.5 billion United states dollars, a move that will create space for the country to move resources meant for debt repayments to developmental and economic needs.

The agreement has been welcomed by various stakeholders as a landmark deal that will help turn around Zambia’s economic fortunes.

(Image credit Bloomberg)

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