‘Give regular updates on sinking fund’
THE Ministry of Finance must be giving regular updates on the sinking fund or any other viable proposed redemption strategy especially for Eurobonds as the bullet payment of the first US$750 million is due in 2022, the Policy Monitoring and Research Centre (PMRC) has said.
And PMRC has urged the Ministry of Finance to continue engaging the International Monitory Fund (IMF) for technical assistance and possible bailout package that will assure and signal stability of the economy to bondholders and investors. PMRC executive director Bernadette Zulu in a statement yesterday, said it was prudent that the public were informed on the sinking fund to be used to pay out the Eurobond. “PMRC urges the Ministry of Finance to give regular updates on the sinking fund or any other viable proposed redemption strategy especially for the Euro-bonds taking into consideration that the bullet payment of the first Eurobond amounting to US$750 million falls due in 2022,” Mrs Zulu said. She however said Government must continue to work with the IMF to define a working relationship with them and determine the nature of its support to the Government. Ms Zulu said it was prudent that the Ministry of Finance continued engaging the IMF for technical assistance and possible bailout package. She said the bailout package would subsequently enable to stabilise which would build confidence to the bondholders and investors. Meanwhile Ms Zulu said she was delighted that Government was implementing reforms to enhance domestic resource mobilisation by stepping up the modernisation of revenue collection processes and provision of Government services through electronic platforms. “With regards to Farmer Input Support Programme (FISP), PMRC urges the Government through the Ministry of Agriculture to develop an exit and graduation strategy for all beneficiaries to ensure sustainability of the programme in the long term. And in view of the approved New Energy Policy 2019, we re-echo the need to improve the credit worthiness of ZESCO as the sole off-taker in order to instill confidence in private sector investors that the organisation would purchase energy generated,” she said.