Zambia Begins Debt Restructuring Talks with Bondholders as it Seeks Relief from $3.5 Billion in Bonds
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Zambia has formally started debt restructuring talks with bondholders this week. Creditors are under non-disclosure agreements.
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Zambia is expected to sign an agreement with bilateral creditors like China and the Paris Club to rework $6.3 billion in debt.
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Zambia defaulted on its debt in 2020 during the COVID-19 pandemic. It has $3.5 billion in debt to international bondholders.
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A creditor committee holding 45% of Zambia's bonds is involved in the talks.
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The deal may involve higher bond coupons, shorter maturities, or both.
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Zambia aims to reach a bondholder deal before an IMF review of its bailout program later this year.