Reported 7 months ago
Zambia has successfully ended a nearly four-year default on its dollar bonds by issuing two series of restructured notes, becoming the first in Africa to default during the pandemic in 2020. The restructuring, achieved through intense negotiations, marks the first successful use of the Group of 20’s Common Framework to restructure eurobonds alongside debts to other governments, including China. However, credit rating agencies have not yet changed their default classifications as the government still needs to restructure $3.3 billion in loans owed to commercial lenders separately. Talks with creditors are ongoing, and agencies like Fitch and S&P expect Zambia to bounce back economically next year, with copper production and prices playing a key role in its recovery.
Source: YAHOO