Zambia Yields Soar to Record After Fitch Warning on IMF Bailout

(Bloomberg) -- Yields on Zambia’s dollar debt rose to a record to approach 25% after Fitch Ratings sounded the latest alarm on the southern African nation’s debt levels and expressed doubt it can secure an International Monetary Fund bailout.

While Bwalya Ng’andu, the finance minister, announced measures to curb Zambia’s soaring government debt last month, his predecessor had made similar pledges and failed, according to Fitch.

Yields on Zambia’s $750 million Eurobonds due 2022 increased 62 basis points to 24.64% as of 3:44 p.m. in London, with the notes trading at 65.3 cents on the dollar.

“As a result, we are also skeptical about progress on an IMF program, although the government will hold further discussions with the IMF in March and April,” Fitch analysts including Jermaine Leonard said in a report Thursday.

To contact the reporter on this story: Matthew Hill in Maputo at mhill58@bloomberg.net

To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Vernon Wessels

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