Debt-plagued Zambia reaches deal with China, other nations to rework $6.3B in loans, French say
The French government says that Zambia has reached a deal with China and several other government creditors to restructure $6.3 billion in loans. The deal was announced on the sidelines of a summit in Paris that's aimed at reforming a global financial system to better help developing nations like Zambia. The African nation defaulted in 2020 when it failed to make a $42.5 million bond payment, and its debt has made it hard for it to develop economically and take on new projects. Experts have said such prolonged debt crises can send nations sliding deeper into poverty and joblessness by making it harder to get credit to build for the future.