Zambia's IMF Bailout Is a Warning, a Prophecy

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Zambia is experiencing a bit of a rebound because it is looking like it will emerge from this debt crisis. But Zambia is also, I guess, a warning, a prophecy for other countries in this position such as Sri Lanka and Pakistan. It's taken about a year to negotiate this IMF bailout to get even just the in principle agreement of creditors on debt relief. So Zambia shows this takes time even if you have a complete smash and a disorderly default. The FT's Joshua Franklin says this could be a problem for regulators when conducting investigations.

The EU is considering a windfall tax for energy companies, Zambia’s IMF bailout is a test for countries that have defaulted on Chinese debt, and US regulators are cracking down on bankers’ use of messaging apps.

Mentioned in this podcast:

EU plans windfall tax to counter ‘astronomic’ energy bills

Zambia’s $1.3bn IMF bailout to test how China handles defaults

Wall Street’s $1bn messaging ‘nightmare’

The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. The show’s editor is Jess Smith. Additional help by Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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