Zambia On Brink of Default With Creditors Set to Refuse Relief

A KEY bondholder group is set to reject Zambia’s request for an interest-payment holiday, putting the country on course to become the first African sovereign defaulter since the onset of the coronavirus pandemic.

There is consensus among the so-called Zambia External Bondholder Committee to reject the proposal, with a voting deadline of Wednesday ahead of meetings with creditors on Friday, according to two people with direct knowledge of the matter, who asked not to be identified because they’re not authorized to speak publicly.

The committee’s members hold about 40% of the southern African nation’s $3 billion of outstanding dollar bonds, and at least 25% of each, enough to vote down the proposal.

Bondholders abstained from previous votes that had been set for Oct. 20, prompting the adjournment to Nov. 13 to allow the government more time to convince them to accept the proposed six-month payment freeze.

Zambia said it is seeking equal