Economics
Zambia Secures China Debt Relief Before Key Bondholder Vote
- Deal could pressure bondholders to accept similar terms
- Zambia wants to re-profile $12 billion in external debt
Zambia is seeking to reprofile external debt that has grown to nearly $12 billion.
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Zambia said it’s won some debt servicing relief from China Development Bank, putting more pressure on private bondholders to accept a government proposal with similar terms before the country becomes the first to default in Africa since the onset of the coronavirus pandemic.
The Chinese state-owned lender agreed to defer interest due Oct. 25 for six months, and to reschedule the principal due by the same date over the life of the facility, Zambia’s Finance Ministry said in a statement. The southern African nation has until a Nov. 13 vote to convince holders of its $3 billion in Eurobonds to accept a six-month interest-payment holiday.