Zambia’s Creditor Group Sees $6.3 Billion Debt Deal in Days
- Progress on talks has been slow since June deal-in-principle
- Group plans MOU on $6.3 billion of debt by end of IMF meeting
Zambian kwacha banknotes.
Photographer: Waldo Swiegers/Bloomberg
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Zambia’s official creditor committee plans to sign a memorandum of understanding to restructure $6.3 billion of debt by the close of the International Monetary Fund’s annual meeting next week, two people familiar with the matter said. The nation’s dollar bonds rallied.
The government has made slow progress in talks since June, when it reached a deal-in-principle with the committee co-led by China and France. The agreement would see the interest rates cut to as low as 1% and the loans only repaid in 2043, with a 40% reduction in net-present value of the debt.