![Zambian President Edgar Lungu shakes hands with Chinese leader Xi Jinping at the Great Hall of the People, in Beijing, Sept. 1, 2018 (pool photo by Nicolas Asfouri via AP).](https://www.worldpoliticsreview.com/wp-content/uploads/2020/10/l_zambia-default-china-10292020-1.jpg?w=519&h=259&crop=1)
With its economy in trouble from a high public debt burden as well as the COVID-19 pandemic, Zambia’s government recently suspended interest payments on some sovereign bonds. The country is already in arrears on some of its debt—including $183 million in official bilateral loans from other countries and $256 million from commercial banks—and has asked for a six-month suspension on interest payments from the holders of its $3 billion in Eurobonds, which are denominated in foreign currencies. These bondholders are due to make a final decision on Zambia’s request in mid-November, but a substantial portion of them have so far […]