Zambia is in talks to restructure $3.3 billion of commercial debt, following a recent agreement with overseas sovereign bondholders, Reuters reported on Wednesday.
Secretary to the Treasury Felix Nkulukusa stated that negotiations have commenced, with progress made, especially with private creditors beyond bondholders. The ongoing dialogue, conducted in good faith, addresses the $3.3 billion debt.
Having reached a preliminary agreement with primarily western asset managers on March 25 to revamp about $3 billion in international bonds, Zambia is close to conclude a complex process marked by several delays.
The nation, grappling with a severe drought, now aims to negotiate over restructuring deals with other commercial creditors, having previously settled with bilateral creditors in June 2023.
Among the remaining commercial lenders are the Chinese state-owned China Development Bank (CDB) and Industrial and Commercial Bank of China (ICBC), the African Export-Import Bank (Afreximbank), and western institutions like Standard Chartered.
As per the latest IMF report, Zambia’s external debt stood at $18.3 billion by the end of 2022, with approximately $13.4 billion undergoing restructuring, according to Nkulukusa.
