Economics
Zambia’s ‘Unknown’ Debts Face Scrutiny After Mozambique Scandal
- Some lenders think external debt may be twice official figure
- Foreign debt is key to securing planned $1.3 billion IMF loan
This article is for subscribers only.
Zambia is facing tough questions over its foreign-debt levels from investors who think the real number may be more than double what the government says it is.
Lenders including Nomura Holdings Inc. believe the state hasn’t come completely clean on how much external borrowing it’s undertaken. This is raising concern the southern African nation may be headed for a similar situation to neighboring Mozambique, where hidden debts led to default and the government is seeking to restructure.