The Rhodium Group published on 29 June 2023 an analysis titled "China's External Debt Renegotiations after Zambia" by Matthew Mingey and Logan Wright.
China appears to be changing its approach in providing debt relief to emerging markets following the recent deal on restructuring bilateral loans to Zambia. However, the Zambia deal reveals that China's Export Import Bank may still not be speaking for all of China's lenders. Beijing's banks remain insistent on extending loan terms and adjusting financing costs rather than accepting haircuts on principal. Beijing's tactics may change further as financial stress in emerging markets builds.
