Finance Minister in Africa’s copper producer Zambia, Margaret Mwanakatwe disclosed in a treasury note on 10 May that Zambia’s external debt rose marginally to $10.178 billion as at 31 March. Mwanakatwe informed the nation that the infinitesimal rise to $10.178 billion from U$10.05 billion accounted for 38% of gross domestic product.
The MinFin Minister also stated that stock of government securities marginally declined due to the pay out on some maturities. The domestic debt stock at end March 2019 was K58.21 billion down from K58.26 billion recorded at end 2018, accounting for 21% of gross domestic product.
Guarantees amounted to $1.3 billion, representing 5% of GDP.
As at end 2008, domestic arrears amounted to K15.6 billion, or 6 percent of GDP.
Mwanakatwe advised that total debt inclusive of guarantees and domestic arrears sits at around 70% of GDP (Dec 18), calculated on the basis of the latest GDP figures released by the Central Statistical Office.
“Let me say something about Government intentions with regard to clearance of domestic arrears. In view of the magnitude of the amount, the arrears can only be dismantled over the medium term. Depending on the amounts involved, some of the arrears will be quickly paid off, with a focus on local suppliers so as to reduce high non-performing loans, improve liquidity for our suppliers and thereby induce economic activity,” Mwanakatwe said.