Q FM Africa's Modern Radio
Finance Minister Felix Mutati picture by Albert Mpezeni
Zambia’s external debt stock has increased to US$17.2 billion as at the end of May 2017.
This is from US$6.9 billion in December 2016.
Finance Minister Felix Mutati has told Parliament in a ministerial that the increase in the debt stock was on account of new disbursements.
Mr Mutati says with the maturity of the two Eurobonds in 2021and 2022, government’s strategy is to refinance the two Eurobonds so that they have longer maturities in order to leave room to borrow to invest particularly in economic infrastructure.
He adds that the domestic debt stock stood at K38.6 billion in May 2017 compared to K33 billion in December 2016.
Mr Mutati explains that the rise in the domestic debt stock is as a result of the increased demand for government paper.
He states that in order to ensure continued debt sustainability, government has finalized a medium term debt strategy that will provide a framework for prudent debt management.
He adds that regular debt sustainability analysis will be the guiding principle for future borrowing activities.
And Mr Mutati says the stock of domestic debt arrears stood at K17.4 billion as at the end of March 2017.