(Ecofin Agency) - The group of international investors holding 70% of Zambia’s three Eurobonds turned down today September 30 the country’s request to obtain a 6-month moratorium on the payment of nearly $118 million.

“Members are unable to provide a positive response to the consent solicitation request at this time given the absence of clarity on several issues,” they said.

Zambia is the first African country to request debt relief from bondholders since the start of the covid-19 pandemic. The government wanted to reach agreements with its creditors. But it failed to convince them during a virtual meeting held on September 29. Investors believe they received too little information about the country's debt management.

This initial denial of Zambia could have a domino effect on other countries that are under stress due to their external debt. Countries such as Angola are also mulling over the idea of requesting a debt relief. Kenya has also pointed out the risk of debt stress.