Zambia Moves Closer to Default as Spotlight Cast on Debt Relief
- Country says it can’t meet obligations without debt standstill
- Test case for indebted nations seeking relief from creditors
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Zambia moved closer to becoming the first African nation to default on its dollar bonds since the onset of the coronavirus, making it a test case for nations worldwide battling to meet obligations to a range of lenders from bondholders to Chinese state banks.
Holders of Zambia’s $3 billion of Eurobonds will vote next week on the country’s request for a six-month interest-payment holiday. A core croup of creditors have already rejected the proposal, prompting Zambia to say Tuesday it won’t be able to service its $3 billion of Eurobonds unless it gets the relief.