Zambia’s billion debt sustainable- YAMBA

Government says the country’s total debt remains sustainable owing to good economic policies.

Launching the 2014 Debt Sustainability Analysis in Lusaka this morning, Secretary to the Treasury, Fredson Yamba said government has however put in place a rolling Medium Term Debt Management Strategy to mitigate future liquidity challenges with total debt of K4.8 billion.

 

Mr. Yamba says government is considering setting up a sinking fund to raise money for settling the two bonds contracted or buying off the bonds when they reach maturity stage.

He says Zambia’s macro economic conditions have generally remained favourable as evidenced by sustained positive economic growth, single digit inflation and positive current account balance.

 

Mr. Yamba says government in partnership with the Macro Economic and Financial Management Institute of Eastern and Southern Africa undertook the Debt Sustainability Analysis .

He said the analysis was conducted from June 13th to 26th 2014 and was meant to assess the sustainability of Zambia’s current level of debt and prospective new borrowing requirements in the medium to long term.

ZNBC