China Is Damping Zambia’s Efforts to Come Out of Default
- Beijing wants investors to take deeper cuts in restructuring
- Test-case for G-20’s Common Framework bogged down for years
The dispute stems from China’s rejection last month of a proposed deal between Zambia and bondholders.
Photographer: Greg Baker/AFP/Getty ImagesThis article is for subscribers only.
Beijing’s standoff with global bond investors over $3 billion of Zambian debt is damping the African nation’s efforts to come out of default, and challenging the effectiveness of the International Monetary Fund-backed blueprint on sovereign restructurings for poor countries.
The fund’s executive board on Wednesday approved an $187 million disbursement to Zambia, after saying earlier this month that the government is making progress and good faith efforts toward reaching a deal with private creditors.