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Zambia seeks $8bn debt relief

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President Hakainde Hichilema’s government secured the $1.3bn IMF loan, two years after Zambia became the first African country to default in the pandemic © Xinhua/Shutterstock

Zambia is asking for more than $8bn of relief on its debts to Chinese lenders, private bondholders and other creditors, according to an IMF analysis, in a restructuring widely seen as a test of Beijing’s willingness to absorb losses on loans it has extended to developing countries. After securing an IMF bailout last week, Zambia plans to reduce its debt payments by $8.4bn over the next three years, according to a fund analysis that was published on Tuesday.

Further debt adjustment is likely later on, it added. President Hakainde Hichilema’s government secured the $1.3bn IMF loan, two years after Zambia became the first African country to default in the pandemic following what the fund called “years of fiscal profligacy”. The country’s debts quadrupled between 2014 and 2019 amid a surge in infrastructure borrowing under Edgar Lungu, the former president, who lost elections last year to Hichilema.

With Lusaka owing about $6bn of its $17bn in external debt to Chinese lenders, China is its biggest creditor. Beijing’s handling of Zambia’s bailout is seen as a litmus test for how it deals with defaults by other developing economies, such as Sri Lanka and Bangladesh. In recent decades, China has surpassed the World Bank as the biggest foreign creditor to less developed countries. Loans are expected to sour as growth slows and global interest rates rise. The IMF offered the bailout after bilateral creditors, including Chinese lenders, agreed in principle to debt relief. But Zambia must now negotiate the details of how to restructure those loans, which include $3bn of dollar eurobonds.

Zambia must cut down the amount that it spends on servicing debts from nearly two-thirds of revenues to about 14 per cent in 2025, and it should maintain this ratio for most of the next decade, the IMF said. “This would imply some additional cash debt relief [on top of the $8bn] will be needed over 2026-31,” the fund added. The “initial read is no big surprise”, said Kevin Daly, investment director at Abrdn and a member of a committee representing Zambian bondholders, though he added that he had expected a larger adjustment over a shorter time horizon.

Lusaka hopes to finish talks with official lenders by the end of the year and will then start talks with private creditors. Zambia will ask creditors to agree to either outright writedowns of debt or to accept an extension of the term of their loan repayments. Analysts have said that Beijing is likely to favour lengthening the time it takes to repay the debts instead of taking a more visible haircut. Bondholders, who would prefer to take haircuts, have expressed concerns that they will have to sign up to the terms favoured by China.

Chinese banks and other institutions extended loans to Zambia to build airports, roads and other projects that the country struggled to repay as the economy slowed and corruption mounted under Lungu. In addition to the debt relief, Zambia is bracing for what the IMF called “a large, upfront, and sustained fiscal consolidation” to bring public finances under control.

Hichilema’s government has agreed to eliminate fuel subsidies and to cut agricultural subsidies. It has pledged to protect social spending. Zambia has also cancelled $2bn of mostly Chinese project loans that were in the pipeline and yet to be disbursed. Under the terms of the bailout, the IMF expects Lusaka to limit new external loans to those from concessional creditors, such as multilateral lenders, over the next few years.

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Pope Francis to undergo intestinal surgery and will be hospitalized for several days

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Pope Francis went to the hospital on Wednesday for surgery on his intestine, two years after he had 33 centimeters (13 inches) of his colon removed because of an inflammation and narrowing of the large intestine.

The Vatican said Francis, 86, would be put under general anesthesia and would be hospitalized for several days.

Pope Francis appeared at his weekly general audience on Wednesday, a day after he went to the hospital for a checkup.

The Vatican provided no details about the medical tests Francis underwent on Tuesday at Rome’s Gemelli hospital. Francis, 86, appeared in good form, though, at his audience in St. Peter’s Square, zipping around the square in his popemobile greeting the faithful. He also had two meetings Wednesday morning beforehand, the Vatican said.

Francis spent three days at the Gemelli hospital in late March. Initially, the Vatican said he had gone in for scheduled tests, but the pontiff later revealed he had felt pain in his chest and was rushed to the hospital where bronchitis was diagnosed. He was put on intravenous antibiotics and was released April 1, quipping that he was “still alive.”

The Argentine pope had part of one lung removed when he was a young man. He also suffers from sciatica nerve pain and has been using a wheelchair and walker for more than a year because of strained ligaments in his knee.

Francis has had a packed schedule of late, with multiple audiences each day. The Vatican has recently confirmed a travel-filled August, when the Holy See and Italy are usually on vacation, with a four-day visit to Portugal the first week of August and a similarly long trip to Mongolia starting Aug. 31.

In a sign that the trips were very much on, the Vatican on Tuesday released the planned itinerary for Francis’ visit to Portugal for World Youth Day events from Aug. 2-6. The itinerary confirms a typically busy schedule that includes all the protocol meetings of an official state visit plus multiple events with young people and a day trip to the Marian shrine at Fatima.

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My son was born with bulging eyes and totally blind – but baffled doctors don’t know why

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A mother is appealing for answers over the mysterious condition which left her son with bulging eyes.

Kobi-Jai Morgan, who is registered blind, was born last March with bruising around his eyes and was unable to open them.

He spent six weeks in hospital, where doctors discovered the structure of his eyes had not fully developed but could not figure out why.

Despite appointments with specialists, medics have been left scratching their heads over what is causing his condition.

His mother, Morgan Nottingham, from Ystalyfera in South Wales, is now desperately searching for answers.

The 24-year-old’s labour was induced in last spring at a hospital in Bridgend, where she had a difficult delivery.

Kobi-Jai was then transferred to a neonatal intensive care unit at Singleton Hospital in Swansea and put on ventilation and a feeding tube.

As well as bruising around the eyes, he had a large hole in his heart and a floppy larynx — the tube that helps carry air to the lungs and contains vocal cords.

His unknown condition means his eyes are light-sensitive and he spends a lot of time in discomfort.

As a result, he sometimes scratches his eye and pushes his eyelids towards his eyebrows when they are irritated.

His mother administers four different types of eye drops to Kobi’s eyes every day and he wears specialist transparent glasses made by Cardiff University.

The 15-month-old has been to Great Ormond Street Hospital in London and visited private specialists — but still does not have a diagnosis.

However, tests show that he can see some light and shadows.

Ms Nottingham said: ‘We’ve come to terms with the fact that he might not have his vision for life. But we get looks as it is.

‘He has bulgy eyes and the bottom of his eyes scrape across his cheek. He doesn’t realise while he’s little but it’s really sad, bless him.’

Kobi-Jai can now tell his mother when his eyes are bothering him.

She added: ‘He cannot carry on with his eyes like that. There has to be someone out there that knows something.

‘This is completely new to us. When he starts going to school — you know what kids are like. He has children coming up to him already and saying: “Oh mammy he looks scary”. I want answers.’

Ms Nottingham called for more research and resources that could help Kobi-Jai.

She said: ‘At the moment we have found no blind support centres, schools or sensory classes locally. The closest specialist school is in Birmingham.

‘We want to bring more awareness and help and support other parents going through the same thing. We’re all learning.’

A fundraiser set up to support Kobi’s medical care has raised over £12,500.

Family friends have organised a 12-hour charity walk, five-a-side football tournament and bike ride in a bid to raise more funds to help with his care.

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US actor Danny Masterson found guilty on two rape counts

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Los Angeles Times via Getty Images Masterson arrives at the Los Angeles court to learn his fate with his wife, Bijou Phillips

A jury in Los Angeles has found US actor Danny Masterson guilty on two out of three counts of rape.

The star of That ’70s Show, a TV series, faces up to 30 years in prison. He was led from court in handcuffs.

Three women, all former members of the Church of Scientology, accused the actor of sexual assault at his Hollywood home from 2001-03.

Prosecutors argued Masterson had relied on his status as a prominent Scientologist to avoid accountability.

The jury of seven women and five men was unable to reach a verdict on a third count after a week of deliberations, ending up deadlocked at 8-4.

One of his victims, who was raped in 2003, said in a statement quoted by the Associated Press: “I am experiencing a complex array of emotions – relief, exhaustion, strength, sadness – knowing that my abuser, Danny Masterson, will face accountability for his criminal behavior.”

Masterson’s wife, actress and model Bijou Phillips, wept as he was led away, CBS News reports. Other family and friends sat stone-faced.

Another jury in an earlier trial was unable to reach a verdict in December 2022.

Prosecutors chose to retry Masterson and this time the judge allowed attorneys to present new evidence that had been barred from the first trial.

Though the actor was not charged with drugging his victims, the jury heard testimony that the women had been dosed before he raped them.

Masterson was first accused of rape in 2017 during the height of the #MeToo movement. He responded by saying that he had not been charged or convicted of a crime, and that in the climate at the time “it seems as if you are presumed guilty the moment you are accused”.

Charges came after a three-year investigation by the Los Angeles Police Department. Prosecutors did not file charges in two other cases because of insufficient evidence and the statute of limitations expiring.

Throughout the trial, prosecutors argued that the Church of Scientology had helped cover up the assaults – an allegation the organisation has categorically denied.

At the time of the assaults, Masterson and all three of his accusers were Scientologists. Several of the women said it took them years to come forward because Church of Scientology officials discouraged them from reporting the rape to police.

Instead, they were forced to rely on the Church’s “internal justice system”, prosecutors said.

Scientology officials told one survivor she would be kicked out of the Church unless she signed a non-disclosure agreement and accepted a payment of $400,000 (£320,000), according to prosecutors.

Judge Charlaine Olmedo allowed both sides to discuss the dogma and practices of Scientology.

But Deputy District Attorney Ariel Anson told jurors during the trial: “The Church taught his victims, ‘Rape isn’t rape, you caused this, and above all, you are never allowed to go to law enforcement.'”

Throughout the trial, the defence tried to undermine the credibility of the “Jane Does” by focusing on inconsistencies in their testimony and their supposed drive to get “revenge” against their former Church.

During closing arguments, Masterson’s defence lawyer said of the survivors: “If you are looking for motives why people are not being truthful… there are motives all over the place.”

Although the Church of Scientology was not a defendant in the case, before closing arguments began, a lawyer with ties to the Church emailed the district attorney’s office to complain about the way the Church was portrayed during the retrial.

The defence also argued that the prosecution had relied heavily on testimony about drugging because there was an absence of evidence of any force or violence.

Masterson’s lawyers tried, unsuccessfully, to have a mistrial declared.

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