[DoodleBob]

That was (I believe) called the LDC (lesser-developed-country) crisis. US banks poured billions into sovereign loans on the premise that "governments don't default.

Oops.

But in that case, it was commercial banks making the loans.

This is a case of sovereign-to-sovereign lending. In this balance of power, China will have many apologists and supporters. If Zambia makes a stink, the only one who will care is Bono.

[DoughtyOne]

Yeah, I believe you’re right there.