⁍ Zambia has reached a deal to defer debt repayments that were due this month on a loan from the China Development Bank.

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⁍ Zambia owed CDB roughly $391 million at the end of last year – about a tenth of the $3 billion it owes Chinese entities.

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⁍ China holds about a quarter of Zambia’s foreign debt.

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– Zambia has managed to avoid default for at least one more day after reaching a deal with its major creditor, the BBC reports. The African country missed a $42.5 million coupon payment on one of its Eurobonds on Oct. 14, leaving it with a 30-day grace period before going into default, and it announced a deal with China Development Bank to defer interest payments until April 2021. Reuters reports the country owed CDB $391 million at the end of last year, about a tenth of the $3 billion it owes Chinese entities. “This is a good step in the right direction but they still need to do more to appease the creditor group,” says one of the members of the Zambia External Bondholder Committee. “It is still piecemeal and what you need is something comprehensive.’ Zambia, one of the world’s top copper producers, has been plunged into a debt crisis as the COVID-19 pandemic hurt its economy and exposed its public borrowing as unsustainable. Zambia’s bonds showed little reaction to the news. They were already showing signs of strain before COVID-19 struck this year but are now trading at just 40% of their face value. The government missed a $42.5 million coupon payment on one of its Eurobonds that was due on Oct. 14 but has a 30-day grace period before it goes into default. It has asked Eurobond holders to defer interest payments until April 2021. One of the sticking points has been whether other key lenders such as China would also agree to reschedule repayments.