Source: Agenzia Fides – MIL OSI
Headline: AFRICA/ZAMBIA – Concerns about the debt crisis that endangers the lives of the poorest
Lusaka – Zambia is a country almost unknown to international news. There are no wars, tribal clashes, hunger, drought, locusts, dictators, at least until yesterday. However, in recent weeks the country has entered a worrying spiral. In November, the Eurobond coupons were not paid for a total of USD 42.5 million while the payment of USD 391 million due to the China Development Bank was postponed until April 2021. The debt of Zambia has more than doubled in the past five years, from USD 4.8 billion in 2014 to USD 11.2 billion in 2019 and from 18 to 48% of GDP. Inflation rises and the currency depreciates: in November, Zambia’s annual inflation rate rose to its highest level in the last four years , as the kwacha lost 33% of its value against the USD.