Zambia FinMin: Default Raises Risk of Legal Action By Bondholders

Zambia finance minister Bwalya Ng’andu said on Wednesday that the country’s default on $3 billion in Eurobonds had increased the risk of bondholders taking legal action, Reuters reported. Zambia became Africa’s first pandemic-era sovereign default after it failed to pay a $42.5 million Eurobond coupon at the expiry of the grace period on Friday. “There are some risks associated with the decision not to pay. These include bondholders taking legal action to enforce their rights under the financing arrangements,” said Ng’andu, addressing parliament, adding it would work closely with its legal advisers to respond to this possibility. Read more