Debt relief campaigner calls on for Zambian Eurobond holders to accept steep write-offs

Ahead of a crucial vote on Zambia’s interest payment holiday request, a leading debt relief campaigner has called on for Zambian Eurobond holders to accept steep write-offs and allow the country to regain its footing. Sarah-Jayne Clifton, director of the UK-based Jubilee Debt Campaign, said that creditors lent to Zambia at high-interest rates knowing the debt could become unpayable and “that risk has now materialized, and bondholders must now accept a significant debt write-down”. Clifton added that “it is simply immoral for bondholders to demand full re-payment and to make huge profits on Zambia’s debt while the country struggles with COVID-19, a major economic crisis and spiraling poverty levels”.  So far, reports suggest the Eurobond holders are set to vote against Zambia’s request on November 13, citing Zambia’s lack of progress in talks with the International Monetary Fund and poor transparency regarding its borrowing from China.

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