Holders of Zambia’s three Eurobonds amounting to 3 billion dollars have rejected Zambia’s request for suspension of interest payments for six months.
The decision to decline Zambia’s request is based on alleged absence of clarity on some issues bordering on rising debt, transparency and fair treatment among creditor classes.
The bondholders have further observed that Finance Minister Dr Bwalya Ng’andu’s proposed 2021 national budget deviates Zambia from the path of debt sustainability.
This is according to statement issued by Newstate Partners who have been appointed as financial advisors by bond holders.
The bondholders’ committee consists of 14 international financial institutions based in the US and Europe and holds approximately 40 percent of Zambia’s outstanding Eurobonds.
Zambia has an external debt of US$ 11.9 billion and has hired Lazard Freres as advisors to restructure the external loan.