Holders of Zambia’s Eurobonds are reportedly planning to reject the government’s request for a 6-month interest payment holiday on No-vember 13. According to sources familiar with the matter, the Zambia External Bondholder Committee holding more than 40% across all Zam-bia’ bonds and a blocking stake issue indicated that they were likely to reject the government’s request. Moreover creditors noted that the government had not contacted them ahead of the launching of the consent solicitation and had thus far not presented a convincing plan to make its debt sustainable. Given November 13 is the cut-off for the grace period, creditors are expected in all likelihood to vote against the re-quest this time around and this could push Zambia one step closer to a debt default.
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