Zambia Secures Major Debt Relief Deal with Private Creditors, Inching Closer to Broader Restructuring

• Zambia reached a historic deal with private Eurobond creditors to restructure $3.5 billion in debt, a major milestone towards restoring debt sustainability.

• The new deal will provide Zambia with more debt relief than a previous agreement rejected by China last year.

• Reaching deals with all creditors, including Chinese state-owned banks, is key for Zambia to finalize its IMF program and economic reforms.

• The agreement could encourage progress on debt restructuring for other African countries like Ghana and Ethiopia.

• Zambia acquired much of its Chinese debt under a previous administration that embarked on ambitious infrastructure projects.