State set to redeem Euro bond – Dr Ng’andu

GOVERNMENT has so far accumulated US10 million in the Sinking Fund to use towards redeeming the Euro bond, Finance Minister Bwalya

g’andu has announced.

r g’andu told arliament

yesterday that the fund, set up in 2018, was one of the options Government intended to use towards redeeming the Euro

bond.

He indicated that Government, through the Ministry of Finance, had also set up a technical committee to draft a strategy for redeeming the three Euro-bonds but was currently awaiting approval by

Cabinet before implementation.

He also observed that the measures Government was undertaking towards the redemption process had no

adverse effects on the fiscal

performance of the current budget, as it was already provided for in the 2019

budget.

The minister was responding to Solwezi West Member of

arliament, Teddy Kasonso,

who wanted to know the measures Government was taking to ensure that the Euro Bonds were paid when they

fell due.

“The strategy towards the redemption of the three Euro-bonds, which is yet to be

approved by Cabinet, identifies

various options available, once Cabinet grants approval, the Ministry of Finance will implement the recommended measures and currently there is US$10 Million in the Sinking Fund which is one of the

options,” r g’andu said.

He named the major components of the public debts as external debt, domestic debt

and overnment arrears.

r g’andu indicated that

external debts and domestic debts would be paid when due in accordance with

the respected financing

arrangements, while Government arrears would be dealt with in an annual budget

provision.

ayment of debt is

prioritized and the reason for that is to ensure that there is

no default of the debt. The debt

service takes precedence on the consolidated fund of the

budget,” he said.