Zambia Has No Choice But IMF Aid, Opposition Leader Says

Zambia’s only option is to seek a bailout from the International Monetary Fund as years of excessive borrowing coupled with the impact of the coronavirus pandemic have left it struggling to pay its debts, the main opposition leader said, Bloomberg News reported. The southern African nation’s Eurobonds have been among the world’s worst performing this year and its currency has depreciated by 23% against the dollar as the global outbreak of the virus halts supply chains, forcing down the price of copper that accounts for most of Zambia’s exports. The economy will shrink by 3.5% this year, according to the fund. “There is no choice here, the government has to come to the table,” United Party for National Development President Hakainde Hichilema said in an interview Tuesday. “There isn’t a way out other than being part of the multilateral community.” Read more