Zambia Closer to Default After Missing Eurobond Interest Payment 

Zambia missed a $42.5 million Eurobond coupon payment due yesterday, bringing it a step closer to becoming the first African nation to default since the onset of the coronavirus pandemic, according to a person with direct knowledge of the situation.

The southern African nation warned Oct. 13 it wouldn’t be able to meet its obligations on its foreign commercial debt unless creditors provided it relief while it works to restructure its loans. Eurobond holders are due to vote next week on Zambia’s request for a 6-month interest payment deferral on its $3 billion in notes.

Zambia has a 30-day grace period before it’s technically in default. The finance ministry didn’t immediately respond to a call or email seeking comment.

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