Zambia says working on modalities of Eurobond repayments

LUSAKA, April 17 (Xinhua) -- The Zambian government has constituted a team of experts to work on modalities of handling Eurobond obligations when they fall due, a senior official said on Tuesday.

The Zambian government acquired three batches of Eurobonds, of 750 million U.S. dollars, 1 billion dollars, and 1.25 billion dollars respectively. The bonds are set to mature in 2020, 2024 and 2027.

Minister of Finance Margaret Mwanakatwe said a competent team of officials from the finance ministry and the central bank has been constituted and was working on repayment modalities.

She said Zambia has no intention of defaulting on any of its Eurobond interest repayments and that the government will follow market-based processes in handling the bonds.

"Work has commenced early to allow for time to set our actions in motion. No bond holder will be coerced into selling off their position," she said in a statement released by the ministry.

The minister said the government is considering restructuring some of its debt as an option when needs arises and that the move is not an indication of default of any of its debts.

Mwanakatwe rejected reports that the International Monetary Fund has asked the government to carry out an independent audit of its debt.

However, she said, the government has been conducting annual debt sustainability analyses in collaboration with international partners, with the latest one conducted last year. Enditem