Zambia and creditors restructure $6.3bn in loans

Zambia and its government creditors – including China – have reached a deal to restructure $6.3bn in loans, the French Government announced last week on the sidelines of a global finance summit in Paris. Voice of America reports the agreement covers loans from countries including France, the UK, SA, Israel and India as well as China – Zambia's biggest creditor at $4.1bn of the total. The deal may provide a roadmap for how China will handle restructuring deals with other nations in debt distress. The International Monetary Fund approved the deal, meaning it is going to allow Zambia to receive more financing from the institution, the French Government said. The Zambia deal came at a summit with more than 50 world leaders, finance officials and activists to discuss ways of reforming a global financial system to better help developing nations struggling with debt, climate change and poverty. Zambia, the continent's biggest copper producer, became Africa's first coronavirus-era sovereign nation to default when it failed to make a $42.5m bond payment in November 2020.