Zambia Warns It Is Preparing For Default

Zambia has warned it is ready to become the first African country to default as a result of the coronavirus pandemic if investors in its $3bn worth of US dollar bonds reject a request by the southern African nation to suspend payments, the Financial Times reported. Africa’s second-biggest copper producer, which is attempting to restructure its $12bn of external debt, has become a crucial test of global efforts to help emerging nations find debt relief as the pandemic devastates their economies. Despite the threat of a default, bondholders, who are due to decide next week whether to accept the government’s request to suspend interest payments for six months, said they planned to reject the proposal. Read more