Zambia's Historic Debt Deal: 1% Interest and Restructuring on the Horizon

Zambia has secured a debt restructuring deal with China and other nations under the Group of 20’s Common Framework mechanism for traditional creditors of the Paris Club to negotiate deep relief alongside new lenders. The deal will push out maturities on $6.3 billion in bilateral debt to 2043, representing an average extension of more than 12 years, with interest rates as low as 1% until 2037. While the deal doesn’t include debt cancellation, it’s a major breakthrough for a process that had been mired in delays, just as the number of countries needing restructuring expanded.