Eurobond holders vote in favour for Zambia’s proposed restructuring deal

Felix Nkulukusa, Secretary to the Treasury, revealed on 28th May that Eurobond holders have voted in favour of Zambia’s proposed restructuring deal ahead of the deadline on 30th May.

This comes after the government finalised the deal on the bonds in March, due to China (Zambia’s largest creditor), had raised concerns over the deal favouring bondholders over other creditors.

It means that the country can nearly cross over the line and end its position in default in its sovereign debt. Nearly all the holders of Zambia’s US dollar bonds voted to approve the delayed restructuring plan.

The approvement of this deal will afford Zambia with greater economic flexibility, and will allow the country to remain on trajectory for sustainable economic growth. Finance Minister Situmbeko Musokotwane said, “after nearly four years since we initially defaulted on our Eurobonds, the close of the restructuring chapter is in sight.”

Zambia has also been in discussions with the IMF regarding support funding in response to the economic effects of the drought. Nkulukusa added that “we are very sure that we’ll be able to conclude,” and take the agreed objectives to the board of the IMF in June.