The Bondholders’ View of the African Debt Crisis

The ongoing debt crisis in Zambia and several other African countries is proving to be much more difficult to resolve than in previous years because of the expanded role of both Chinese lenders and bondholders. Both of these creditors have starkly different approaches in how they’re handling the situation when countries find themselves unable to meet their obligations.

In Zambia, in particular, critics accuse the Chinese of not being forthcoming about the size and nature of their loan portfolio in the country. Similarly, private creditors face equal scorn for appearing to be inflexible.