Finance Minster Bwalya Ng’andu was on the wires yesterday, stating that Zambia is doing everything possible to avoid a sovereign debt default on November 13, including sharing information on its Chinese debt with creditors. Ng’andu added that talks were ongoing with holders of dollar-denominated sovereign bonds in an effort to reach an agreement. Whether these talks will materialize into an agreement, however, re-mains to be seen. Note, creditors are set to vote whether to grant Zambia an interest payment holiday on November 13, which coincides with the cut-off date for the grace period for missing a coupon payment on one of its Eurobonds. At present, creditors have indicated that the government has not presented a convincing plan to make its debt sustainable. There is also a lack of transparency and they are likely to vote against the request, potentially triggering a default event in Zambia.
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