China has urged additional creditors of Zambia to bear an equitable share of responsibility in the nation’s debt restructuring. This call comes in the wake of reservations expressed by the International Monetary Fund (IMF) and official creditors, including Beijing, regarding a negotiated deal between Zambia and foreign bondholders.
Zambia, alongside a committee of bondholders, is engaged in ongoing discussions, as communicated by the nation’s finance ministry on Friday. This follows expressed doubts by the official creditor committee, co-chaired by China and France, as well as the International Monetary Fund, over the past several days.
The finance ministry did not disclose the specific nature of these doubts. However, the campaign group Debt Justice has estimated that in the event of the deal proceeding, bondholders would stand to receive a higher monetary return than official creditors.
Zambia, which defaulted three years ago, recently secured a preliminary agreement with a bondholder group in late October. This milestone occurred within a fortnight of reaching a restructuring arrangement with official creditors.
Late on Friday, an IMF spokesperson conveyed that the IMF Staff has collaborated with the authorities and their advisors to evaluate the ramifications of the proposed Agreement in Principle (AIP).