Zambia Reaches Watershed Deal on China Debt

Agreement is seen as a blueprint for developing countries indebted to Beijing

China is responsible for $5.94 billion of Zambia’s overall external debt.

PARIS—Zambia has reached a deal with China and Western creditors to extend repayment of $6.3 billion in loans, according to people familiar with the matter, the result of drawn-out negotiations that are seen as a test case for developing nations contending with massive debts accumulated under China’s Belt and Road initiative.