Zambia Moves Closer to Default as It Skips Interest Payment
- Country says it can’t meet obligations without debt standstill
- Test case for indebted nations seeking relief from creditors
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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.
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.