Zambia skipped a US$56.1M coupon payment on January 30 on its Eurobond maturing in 2027, the finance ministry confirmed on Sunday.
The copper rich country became Africa’s first pandemic-era sovereign to default after it missed a US$42.5M Eurobond coupon payment in November.
The Zambian government warned in October last year that it wouldn’t be able to meet obligations on foreign commercial debt unless creditors provided it with relief while the government worked to restructure its loans.
Chisha Banda a concerned Zambian said in a reaction, “These are some of the results of operating an immature political system. Borrowing for political expedience beyond what the economy can manage is wrong. Now we have a situation that is beyond our control and Patriotic Front (PF) is not in a position to provide solutions. They do not have also the decency to resign on moral grounds.”
“If Eurobond holders are serious about recovering their money they should impound and sell Lungu’s two presidential jets that are worth more than US$200M. There is your money!,” said Lungu Buck.