Zambia Nears Default With Bondholders Set to Refuse Relief
- Key bondholder committee will reject standstill request
- Zambia seeking six-month interest payment holiday on Eurobonds
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A key bondholder group is set to reject Zambia’s request for an interest-payment holiday, putting the country on course to become the first African sovereign defaulter since the onset of the coronavirus pandemic.
There is consensus among the so-called Zambia External Bondholder Committee to refuse the proposal, with a voting deadline of Wednesday ahead of Friday’s meeting with creditors, according to two people with direct knowledge of the matter who asked not to be identified because they’re not authorized to speak publicly. Zambia has already missed one coupon payment and will be in default unless it pays by Friday.