No more external borrowing - minister

GOVERNMENT has stopped borrowing externally to reduce the current debt stock as it negotiates for relief, says Finance Minister, Bwalya Ng’andu.

Zambia’s current external debt stands at US$11.2 billion.

Dr Ng’andu indicated that Government was focusing on negotiating with relevant stakeholders for debt relief as it puts in measures meant to reduce the debt burden.

He was speaking yesterday when making a submission to the Parliamentary Committee on budget via webinar.

“As far as external debt is concerned, we have stopped borrowing and at the same time we are currently negotiating with the view to get some relief in that space, so as far as external debt is concerned, we are not touching.

“Only domestic debt. There is provision that is available under both bonds as well as treasury bills, but in this instance we are going for specifically bonds and these are long terms bond with maturity going beyond seven years, perhaps going as far as 15 years,” Dr Ng’andu.

The minister expressed optimism that Government would be able to deal with the external debt by the time the bonds were maturing.

“If you take that together with the kind of measures we are taking in terms of trying to reduce the current debt, I think by the time we are getting into the fifth year, we should be in a better position to manage the debt within the existing debt of the time.

“If we had contracted short term debt, it could have been more of a problem but given that they are long term in nature, they will give us the space that we need at the same time to be able to manage the debt situation before we get to that point,” Dr Ng’andu said.