(adds China Exim Bank) LONDON, Nov 16 (Reuters) - The Zambian government’s lack of engagement has made providing near-term debt relief impossible, a large Eurobond creditor group said, adding it may consider other options with the country looking on track for an acrimonious debt restructuring. Zambia has become Africa’s first sovereign pandemic-era default after it failed to pay a $42.5 million coupon at the expiry of the grace period on Friday. The government had requested that bondholders grant it a deferral of interest payments until April as it struggles with the dual burdens of fighting the pandemic and a limping economy. But creditors rejected that request on Friday, prompting the finance minister to confirm that Zambia would not make the payment. In a statement on Monday, the creditors criticised a lack of direct discussion and additional information, as well as government plans to continue borrowing material amounts from non-concessional lenders over the next three years. “The Committee therefore has no basis to conclude that the authorities intend to treat bondholders on an equitable basis with other commercial and non-concessional creditors,” the group said. The group, which holds more than 40% of the total amount of Zambia’s Eurobonds and more than a quarter of each issue, said it hoped the government would engage soon in a “transparent and collaborative” manner. “However, members of the Committee reserve the right to consider other options and remedies as provided for under the terms and conditions of the Eurobonds should substantive progress fail to be achieved,” it added, without giving further details. Zambia’s dollar-bonds dropped more than 1 cent to trade between 44-46 cents in the dollar. The southern African copper producer had already struggled with its debt burden before the COVID19 pandemic roiled global markets. Data from Lusaka showed Zambia’s total external debt stock stood at $4.8 billion, or 18% of gross domestic product, at the end of 2014. Five years later, it had more than doubled to $11.2 billion, or 48% of GDP. The IMF predicts a rise to nearly 70% of GDP by year-end. Zambia’s $3 billion in outstanding Eurobonds is not its only debt. It owes $3.5 billion in bilateral debt, $2.1 billion to multilaterals and $2.9 billion to other commercial lenders. Debt to China’s Exim Bank amounted to $2.6 billion at the end of 2019, making up the lion’s share of the $3 billion Lusaka owed to China and Chinese entities. In a separate statement, Zambia’s finance ministry announced Exim Bank had agreed to suspend interest and principal payments worth $110 million which had been due between May 1 and Dec. 31, 2020 under the G20 Debt Service Suspension Initiative (DSSI). The statement added that Zambia was also engaging in consultations with private Chinese lenders. Analysts and creditors said they expected Zambia could face a lengthy process of overhauling its debt. “A collapse into a disorderly default situation will set the stage for a more protracted and acrimonious restructuring process with an array of creditors,” said Irmgard Erasmus at NKC African Economics. “The absence of sound economic plans to lower the non-interest current account and improve the primary fiscal balance increasingly suggests that haircuts may be unavoidable.” (Reporting by Karin Strohecker; additional reporting by Chris Mfula in Lusaka, Joe Bavier in Johannesburg and Tom Arnold in London, Editing by Ed Osmond and Mark Heinrich)