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Alba Iulia
Thursday, May 28, 2020

Zambia’s external debt continues to grow

Economy Zambia's external debt continues to grow

Minister of Finance Margaret Mwanakatwe
Minister of Finance Margaret Mwanakatwe

Zambias external debt has continued on its growth trajectory and stood at USD$10.05 billion as at December 2018 compared to USD 8.74 billion at the end of 2017.

The rise in debt is attributed to increased disbursements on previously contracted loans for on-going economic infrastructure programmes aimed at supporting economic diversification and structural transformation.

Finance Minister Margaret Mwanakatwe said External debt service during the period was US$759.9 million  and Government guaranteed debt stood at US$1.3 billion.

She said in a statement that domestic debt stood at K58.3 billion at the end of 2018 compared to K48.4 billion in 2017 with the increase partly attributed to the Government’s effort to realign the composition of Zambia’s public debt in line with the Medium-Term-Debt-Strategy.

Mrs. Mwanakatwe said Domestic debt service in 2018 was K8.20 billion compared to K5.5 billion in 2017.

She added that the close of 2018, total domestic arrears stood at K15.1 billion and in an effort to dismantle the arrears, a total of K4.5 billion was paid   out in 2018 against the budget target of K1.3 billion budget.

 

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30 COMMENTS

    • This is not economic mismanagement, this is economic confusion times stup!dity. These people are not making wrong or bad decisions, they are making stup!d decisions, that’s why those debts are increasing every day

    • This is very discouraging.

      And Lungu sees it fit to buy himself a private luxury jet for VVVVVIPs.

      This PF government is yet to explain what happened to the Euro bond loans.

      The IMF are waiting for answers.

      Citizens are waiting for answers.

      Only Scotland yard can trace these loans, which are now probably sitting in foreign accounts.

    • Let me put us into perspective. Since our debt keeps on growing, it also translates that the BOZ reserves will be inversely related to debt. As debt servicing goes up, BOZ reserves will drop. This in short will put pressure on the forex. The Kwacha will definitely depreciate. This is the debt PF is forcing onto this and next generations. Things are getting worse and to make matters worse, ECL and group have no clue.

    • You would expect the head of State to host a press conference…and reasure but he is good at cleaning and jogging

    • This $10bn debt is a tip of iceberg of tge debt crisis. There is huuuge undeclared debt accrued by local municipalities (councils), govt departments, zaf, zambia army, FRA & parastatals.

      Govt dept heads were given powers to borrow $-millions without approval from MoF.
      Now Chinese loans are being off-set in exchange with prime land & free access to minerals & mukula.

      The full extent of the damage will only be known when PF is booted out.

    • Wait for Lubinda Habazoka and his discredited EAZ, their statement will read something like this. The accumulation of debt by his excellence Edgar Lungu is testimony for a growing economy because the more the better……

    • EAZ is full of cowards and educated foooools as they have let that Russian trained jokester to make statements in their name!!

    • Chawama President….what do you expect….he never used to Jog before….now he has time to Jog and fly in a Private jet whilst the majority of Zambians are wallowing in poverty…Chawama economics

  1. Now, this is where the Green agenda comes in. Legalize it. Industrialize it. Grow the Economy. End the Debt. Heal the Nation.

  2. In total debt stands at about $17 billion, with this sort of expenditure on projects , one would have thought by now Zambia would be riding a wave of high employment and exports ???

  3. “on-going economic infrastructure programmes aimed at supporting economic diversification and structural transformation” Jargon just to confuse the masses whilst they pilfer.

  4. Lungu’s GRZ ‘s cluelessness on how to grow the economy,reduce debts and uplift Zambian living standards continues to grow too.

  5. Can u blame Jay Jay for being hard on them.
    And this was suppose to be the head line on deadnbc but guess what..it was totally ignored.

  6. These PFoools are all just dander heads hell bent on destroying the country,Jono Meno Meno will have to answer for all these debts when he is out of power together with his kaponya’s in his stup!d cabinet… Ubu puba ba PFoools

  7. Where are stup!d PFoools cadres to answer for their dull bosses stup!dity, PFoools are all useless, I wonder if anyone in this ka stup!d party has the capacity to think

  8. Previously debt was related to GDP now it it just a statement. I know PF are full of people who sing praise even without looking at facts, but please for the sack of us and bena HH give us a complete picture.

  9. According to her statement total debts stands at $15bn, foreign $10.05 plus domestic $5bn. Total debt servicing stands at $1.443bn , foreign $756.9m plus domestic $683m.

    You can never divorce actions from consequences.

  10. Eish ,Zambia’s debt is growing like invasive weeds or unstoppable like a runaway train with Lungu at the controls.God should’ve given us less copper but more oblongata matter.

  11. But where are the ever present UPND cader, jr mumba ?
    Njimbu you can excuse, he thinks money comes from heaven like rain, OP , Mr P, etal ….they seem to have have cover

  12. I am curious, why does EDL hate press conferences, isn’t it part of his job as first servant to address his employers so as to quench rumour mongering

  13. Spaka and your fellow UPND cadres, read the thoroughly the last paragraph of the article in question….
    Such article is received widely with BLACK MANIFESTO in UPND. Anyway, keep on commenting on.Its in your opinion.

    THOUGH DEBT IS POVERTY.I HATE IT.

  14. More debt in 7 years more than KK in 27 years …… And we have praise singers on this blog, cluelessness despite having degrees and masters.

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