EUROBOND HOLDERS TRICKY TO DEAL WITH – HAABAZOKA

FORMER Economic Association of Zambia (EAZ) president Lubinda Haabazoka has said it will be tricky for the Zambian Government to deal with Eurobond holders because they are business people who have no sentimental attachment to Zambia.

Dr. Haabazoka was reacting to recent remarks by the International Monetary Fund (IMF) Managing Director Kristalina Georgieva where she advised Ghana not to let Eurobond holders twist its arm like it did with Zambia.

The IMF Chief warned Ghana against allowing her arm to be twisted by Eurobond holders as it negotiated the restructuring of some US$13 billion.

Meanwhile Dr. Haabazoka said it was going to be difficult for the Government to deal with the Eurobond holders because they were just people that had put their investments on the market and that they expected returns as soon as possible.

He said that it was different with countries like China who could easily negotiate with Zambia because the two countries had a relationship and had a sentimental attachment.

“It’s going to be difficult for the Government to come up with a deal with the Eurobond holders because those are just individuals like businessmen and retirees who put their savings on the market,” Dr. Haabazoka said.

He said that he had from time immemorial indicated that China was actually easier to deal with as compared to Eurobond holders and that they really needed to ensure that they found a way to deal with them.

He said that he had always maintained that China was a friendlier ally when it came to the issue of debt restructuring because it was a sovereign state unlike the case with individuals.