Zambia to remain in default with Afreximbank until debt reworked

If lawmakers are being asked to support reforms of this magnitude, several questions should be answered before a single amendment is approved.

Zambia will restructure its debt with regional lenders including the African Export-Import Bank and remain in default on those payments until the process is completed, Finance Minister Situmbeko Musokotwane said.

The stance — similar to Ghana’s as that country overhauls its own loans — is at odds with Afreximbank’s position that its “preferred-creditor status” means it shouldn’t have to absorb losses like other commercial lenders. The difference of opinion may set the stage for a bitter dispute that could set a precedent for how Afreximbank and similar lenders on the continent have their debt treated in other restructurings.

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