Zambia to Seek Restructuring of Debt to China After IMF Warning

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Zambia’s cabinet approved plans to restructure the country’s loans from China after the International Monetary Fund said Africa’s second-biggest copper producer was at high risk of debt distress, Bloomberg News reported. The government will also source financing directly from Chinese lenders rather than through contractors in a bid to cut the cost of borrowing, the presidency said Tuesday in an emailed statement. Zambia’s external debt grew to $7.6 billion, or 29 percent of gross domestic product, by the end of August, according to Finance Ministry data, a situation that prompted a warning in October from the IMF. Read more.