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Significance

The deal also appears to have satisfied official creditors, which had blocked an earlier deal on the basis that it granted bondholders more favourable terms than official creditors had negotiated. As such, the new deal heralds the end stages of a debt-restructuring saga that has lasted over three years.

Impacts

The deal could become a model for other unresolved debt-restructuring negotiations under the G20 Common Framework for Debt Treatments.

A final deal will unlock new disbursements under a USD1.3bn IMF programme, which are contingent upon a deal.

A speedy conclusion to the deal would allow Zambia to access concessional finance to help it confront the drought.

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