The Economics Association of Zambia (EAZ) is opposed to calls that government should publicise the terms for the refinancing of the US$750 million Eurobond.
EAZ president Lubinda Habaazoka said he does not personally think it will be wise for government to disclose the terms for refinancing of this bond.
Dr. Habaazoka said disclosing the interest rates and tenures of the refinancing will jeopardize Zambia’s ability to bargain in future especially that this is not the first bond that will refinanced.
In an interview with QTV News by telephone Dr. Habaazoka said it will be difficult to negotiate for lower interest rates for the other two bonds if terms for the refinancing of the first bond are publicized.
Dr. Habaazoka, who is also Director for the Graduate School of Business at the University of Zambia however said government’s debt acquirement should not be confidential.
Dr. Habaazoka said there is need to grow the Zambian economy in order to raise government revenue.
He is of the view that this can only be done by government reducing taxes.
Dr. Habaazoka noted that if taxes are reduced, in the short run, government will experience challenges in terms of revenue collection but that people will become economically active.
He said this is what, in the long run, will increase government tax revenue when individual households have enough savings to convert into investments.