Zambia is holding meetings with the Paris Club and China to restructure its debt. The discussions are part of President Hakainde Hichilema's efforts to repair his country since his election last year. In 2020, Zambia experienced its first pandemic-era sovereign default. According to the government, Zambia had an external debt of $17.27 billion by the end of 2021, which was 120 percent of its GDP. China is Zambia's most significant lender; 18 Chinese government agencies and financial lenders held $6.6 billion of that debt. Debt Negotiations In December 2021, the Zambian government reached a deal with the IMF for a $1.4 billion three-year extended credit facility. It will only get the money if its lenders agree to restructure the debt. As Zam
