Zambia and the International Monetary Fund (IMF) are locked in difficult talks for a possible bailout, laying the foundation for debt relief under a new framework to help poor nations tackle unsustainable arrears.

The copper-rich southern African country became the continent's first coronavirus-era sovereign default after skipping a $42.5-million (34.8-million-euro) interest payment on a eurobond last year.

Zambia which saw its external debt balloon to almost $12 billion in 2020 -- in December requested funding from the IMF to finance reform efforts.

It then missed a second $56.1-million eurobond coupon payment last month, and days later applied for loan restructuring under a G20 debt suspension initiative.

Three-week-long virtual talks with the IMF started on February 11.

"There is incentive to get Zambia under some kind of (IMF) programme that will support a debt restructuring process within the G20 common framework," said Mark Bohlund, analyst at REDD Intelligence.

But President Edgar Lungu is currently more focused on curbing the setbacks of coronavirus and garnering public support ahead of general elections in August, analysts say.