COMMENCEMENT OF FORMAL TALKS TO RESTRUCTURE ZAMBIA`S OVER $3 BILLION INTERNATIONAL BONDS A POSITIVE ECONOMIC INDICATION

Economist Noah Kabwita says the move by bondholders to commence formal talks to restructure over $3 billion of Zambia’s international bonds reflects the confidence they have in the performance of the local economy.

Zambia’s overseas bondholders have entered into a non-disclosure agreement with the Zambian government as of Wednesday this week to mark the start of formal talks to restructure over $3 billion of international bonds.

Commenting on this development, Mr. Kabwita has told Phoenix News that this step means that Zambia will deal with debt which requires the local economy to sustain this confidence from creditors to ensure successful debt restructuring.

He says this development is encouraging and proof enough that creditors are ready to enter into an agreement of restructuring the bonds.