Eurasia Sees Zambia Default Risk Rising as IMF Loan Talks Stall
- Kwacha weakens to four-month low, Eurobond yields soar
- Zambia seen vulnerable to shocks from metal prices, drought
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Zambia’s currency extended its decline to a four-month low against the dollar and its Eurobond yields soared as loan talks with the International Monetary Fund stalled amid concern the country is under-reporting its external debt.
The kwacha weakened 0.8 percent to 10.034 per dollar Friday, bringing its decline in the past two weeks to 5.9 percent. Yields on $1.25 billion of 2027 Eurobonds climbed 12 basis points to 9.43 percent, the highest since December 2016. The yield has surged 246 basis points from a record low in January.