Zambia emerges as a test case as China joins debt relief talks

Beijing's consent to negotiate sets potential precedent for other indebted nations

20220804N Zambia Hichilema

Zambian President Hakainde Hichilema has been working to secure support from the International Monetary Fund. © Reuters

TAKESHI KUMON, Nikkei staff writer

CAIRO -- Zambia has moved closer to a debt workout after top creditor China agreed to negotiate restructuring terms, potentially setting a precedent for a multilateral framework as other low-income countries struggle to repay loans from Beijing.

China said Thursday that it has invited private creditors to discuss debt restructuring later this month. Such a scheme would pave the way for the southern African nation to receive assistance from the International Monetary Fund.

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