Zambia’s official creditors and the International Monetary Fund have “expressed reservations” about a deal in principle the government announced last month to restructure $3 billion in Eurobonds, the government said.
The government and the bondholders’ steering committee are continuing discussions, the Ministry of Finance and National Planning said in a statement on Friday.
Read More: Zambia Strikes Deal With Bondholders on $3 Billion Restructuring
Concern being expressed by the IMF and the official creditor committee led by China and France could mean the government will need to negotiate greater relief from investors holding its dollar notes.
Official creditors agreed to a 40% reduction in the present value of their debt. Zambia’s $1.25 billion in bonds due 2027 were trading at about 64 cents on the dollar on Thursday.