Zambia Moves Closer to Default as It Skips Interest Payment

Zambia skipped an interest payment on its debt, moving closer to becoming the first African nation to default on dollar bonds since the onset of the coronavirus pandemic, Bloomberg News reported. Holders of Zambia’s $3 billion of Eurobonds will vote next week on the country’s request for a six-month interest-payment holiday. A core group of creditors have already rejected the proposal, prompting Zambia to say it won’t be able to service its commercial debts including the bonds unless it gets the relief. The government failed to make a $42.5 million interest payment yesterday, according to Bwalya Ng’andu, Zambia’s finance minister. It has a 30-day grace period before it becomes a default event allowing bondholders to demand immediate repayment of the principal. Read more