Reports quoting sources familiar with the matter suggest that a key bondholder group is set to reject Zambia’s request for an interest payment holiday at a vote on November 13, raise the specter of a default event. There is consensus among the so-called Zambia External Bondholder Committee to reject the proposal, with a Wednesday voting deadline ahead of meetings with creditors on Friday. Note, bondholders had ab-stained from a previous vote on October 20, prompting the adjournment to November 13 to allow the Zambian government more time to convince them to accept the proposal. However, it appears that the government has yet to come up with a credible plan to make its debt sustainable, and there is a lack of clarity on the exact amount of debt owed to China.
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