Zambia says it defaulted on purpose to ensure all creditors are treated equally
Zambia could have paid the $42.5m coupon last Friday, but chose not to as if it pays one creditor then it needs to pay all of them
18 November 2020 - 18:10
Lusaka/Johannesburg — Zambia could have paid a coupon on one of its sovereign dollar bonds last Friday, but chose not to do so due to the need to treat all creditors equally, the copper producer’s central bank, Bank of Zambia, governor said on Wednesday.
However, the finance minister later said that the decision had increased the risk of bondholders taking legal action...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.