What is in Zambia’s debt restructuring proposal sent bondholders?

April 16, 2023 /Finance/ — If Zambia’s debt restructuring proposal is successful, it will help to improve the country’s economic outlook and create a more stable environment for businesses and investors. This will ultimately benefit the Zambian people by creating jobs, improving infrastructure, and providing access to basic services.

It is important to note that there are a number of risks associated with Zambia’s debt restructuring proposal. If the proposal is not successful, it could lead to a further deterioration in Zambia’s economy and could potentially lead to a default on Zambia’s debt.

Zambia sent a debt restructuring proposal to bondholders on April 14, 2023. The proposal includes the following key points:

A 10-year debt service suspension on all external debt, including bilateral and commercial debt.

A restructuring of the country’s Eurobonds, with a reduction in the principal amount owed and an extension of the maturity date.

A new financing package from the International Monetary Fund (IMF) and other multilateral lenders.

The proposal is still under negotiation, and it is not yet clear whether bondholders will agree to it. However, it is a significant step forward in Zambia’s efforts to restructure its debt and get its economy back on track.

Zambia’s debt restructuring proposal is a complex and challenging undertaking. However, it is essential for the country’s economic recovery. If successful, it will help to restore investor confidence and pave the way for sustainable growth.

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