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Zambia’s External Debt Is $11.97Bn, Says Finance Minister

Finance minister Dr Bwalya Ng’andu has insisted that the Zambia’s external debt stands at US$11.97 billion.

The minister said in Parliament today when he presented his ministerial statement on Zambia’s public debt management strategy that he noted that some sections of the domestic and international society are quoting government debt as being US$27.34 billion as opposed to US$11.48 billion at end 2019.

Dr Ng’andu explained that the amount stated in the World Bank report refers to the total national debt that includes private sector external debt of US$15.57 billion.

“Mr Speaker, as I conclude, I would like to reaffirm that our stock of external debt as at end 2019 was as I reported in my 2021 budget address, which is US$11.48 billion. As at end June 2020, this figure increased to US$11.97 billion, which when we add the guaranteed debt for state owned enterprises comes to US$13.55 billion,” he said.

“I have noted, regrettably, that some sections of the domestic and international society, that may not have read the recently released 2021 international debt statistics report by the world bank, are quoting government debt as being US$27.34 billion as opposed to US$11.48 billion at end 2019. The amount stated in the World Bank report refers to the total national debt that includes private sector external debt of US$15.57 billion. Private sector external debt is foreign denominated debt owed by all non-government entities in Zambia in all sectors including mining, manufacturing, transport, energy, wholesale and trade to mention some.”

Meanwhile, the minister reaffirmed that government remained committed to equal treatment of all creditors and transparency in engagements.

He added that engagement was necessary and in the best interest of the country.

One Response to “Zambia’s External Debt Is $11.97Bn, Says Finance Minister”

  1. Imwe aSamueleee letani nkongole zanga Mwe

    $27BILLION – WORLD BANK REVEALS TRUE SCALE OF ZAMBIA’S DEBT

    In the recently released International Debt Statistics report, the World Bank discloses Zambia’s actual External Debt as $27bn as at 2019. Combined with local debt and arrears, this would total $33bn.

    Shockingly, Zambia’s debt trap and debt related ratios are now significantly worse than neighbouring Zimbabwe, a bad indicator for what lies ahead for the Zambian Economy.

    Based on the current debt position, even assuming a 5% growth rate, no further borrowing, and setting aside 20% of domestic revenues aside each year, it would take Zambia almost 50 YEARS to settle all this debt.

    Reply

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