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Zambia Opposition Head Sees Bondholder Haircuts

  • A 20% loss is good starting point, opposition leader says
  • IMF program, restructuring not possible before August election
Hakainde Hichilema

Hakainde Hichilema

Photographer: Salim Dawood/AFP/Getty Images

Corrected

Zambia’s external creditors will have to accept losses as they negotiate debt restructuring and it won’t be possible for the government to secure a bailout from the International Monetary Fund before general elections in August, the main opposition leader said.

Barclays Plc economists last month forecast creditors including Eurobond holders would exit the restructuring with a 20% haircut, and that’s a reasonable starting point for talks, Hakainde Hichilema, president of the United Party for National Development, said in an interview Thursday.