Zambia’s Debt Crisis: Understanding the Complexities of Creditor Composition and its Impact on Debt Restructuring.

Zambia’s debt crisis has been widely publicized since it became the first African country to default on its debt payments during the Covid-19 pandemic. The pandemic worsened the country’s pre-existing debt crisis and led to balance of payment challenges. As a result, the Zambian government sought an IMF bailout program, which was eventually approved in September 2022. The IMF program has intensified discussions around debt restructuring within a common framework coordinated by the G20 major economies.