Zambia’s external debt rises to US $7.2 bn

Fri, 23 Jun 2017 11:07:10 +0000

By BUUMBA CHIMBULU

MINISTER of Finance, Felix Mutati, has announced that Zambia’s external debt stock as at end of May 2017 increased to US$7.2 billion from US$6.9 billion in December, 2016.

Mr Mutati noted that the increase in the stock was on account of new dis-bursements.

He said this in a statement issued to the Daily Nation by the Ministry of Fi-nance public relations officer Chileshe Kandeta.

He further said that the rise was as a result of increased demand for Govern-ment paper.

“In order to ensure continued debt sustainability, Government has finalized a Medium Term Debt Strategy that provides a framework for prudent debt management.

“Further, regular debt sustainability analysis will be the guiding principle for fu-ture borrowing activities.

‘‘The domestic debt stock was K38.6 billion in May 2017, compared to K33 bil-lion in December 2016,” he said.

Mr Mutati also announced that as at the end of March, 2017, the stock of domestic arrears was K17.35 billion.

Mr Mutati said in 2017 alone, the Government had paid out a total of K4.3 bil-lion towards clearance of arrears.

“To address the arrears situation in a sustainable manner, Government has designed a time-specific arrears dismantling strategy. The strategy also in-cludes measures that will stop accumulation of new arrears,” he said.