Zambia has made significant strides towards resolving its financial crisis, with over 90 per cent of its $3 billion international bondholders agreeing to a new restructuring proposal. This development marks a crucial step forward in the country’s efforts to emerge from an extended period of default, Reuters reported quoting Zambia’s Ministry of Finance as saying on Tuesday.

However, based on the instructions the government had received on May 24, “Zambia expects that the meetings will be quorate and that each of the extraordinary resolutions in respect of each series of existing notes will be approved at the relevant meeting,” the ministry said in a regulatory statement.

Zambia defaulted on its debt over three years ago and is currently undergoing debt restructuring under the Common Framework.

The Common Framework is a G20 initiative aimed at coordinating debt restructurings for low-income countries by bringing together major creditors such as China and the traditional group of developed creditor nations known as the Paris Club, according to Reuters.

Considered a test case, Zambia’s restructuring process has faced significant delays, hindering much-needed investments, stalling economic growth, and putting pressure on local financial markets. The situation was worsened by a severe drought.