Zambia Skips Eurobond Payment Again

The Ministry of Finance has confirmed that Zambia skipped another coupon payment worth $56.1 million on its Eurobond maturing in 2027. 

The payment, which was missed on Jan 30, follows an initial default in November, when the government failed to submit a $42.5 interest payment. This forced Zambia to become to first African nation to default on its debts in 2020. 

In October, Zambia warned bondholders that it would not be able to meet its obligations on foreign debts unless creditors provided some relief. 

However the government repeatedly failed to agree to creditors’ demands for debt restructuring as well as greater transparency on how money was being spent. 

In September 2020 Zambia’s total foreign debts stood at $18.5 billion - approximately 104% of the country’s GDP.

Even before the coronavirus pandemic, the country’s debts more than doubled during President Edgar Lungu’s time in office, growing from $4.8 billion in 2014 to $11.8 billion in 2019.