Zambia’s burgeoning debt crisis got a whole lot worse on Friday after a committee representing bondholders rejected the government’s request for a six-month repayment holiday on about $3 billion of Eurobond notes.
The committee represents 14 international financial institutions in the U.S. and Europe, holding about 40% of Zambia’s outstanding Eurobonds.
They’re concerned about whether the government is being fully transparent about the true extent of its debts, specifically about the amount owed to China. (THE AFRICA REPORT)
Other African Debt Relief Headlines:
- ANGOLA: Finance Minister Osvaldo João reassured the financial community that no matter what, the government plans to repay its commercial debts even at significantly higher interest rates. (ACTUALITÉS DU PORTUGAL)
- ETHIOPIA: The global credit ratings agency Standard & Poor’s issued a negative outlook due to “higher-than-expected twin (external and fiscal) deficits.” Addis Ababa is now reportedly seeking a debt repayment moratorium with China and other creditors similar to the deal struck by Angola. (STANDARD & POOR’S)
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