Africa’s copper producer, Zambia’s external debt position rose to USD$10.05 billion as at December last year from USD$9.51 billion in September 2018. This compares to USD$8.74 billion a year earlier in 2017. This was contained in an economic highlight note by the Finance Ministry on 11 March. Drivers of the increase was increased draw downs and disbursements on previously contracted loans for infrastructure program. These the Minister pointed to supporting economic diversification and structural transformation.
External debt service during the period was USD$759.9 million and government guaranteed debt stood at USD$1.3 billion.
Domestic debt stood at K58.3 billion at the end of 2018 compared to K48.4 billion in 2017. The increase was partly due to the government’s effort to realign the composition of Zambia’s public debt in line with the Medium Term Debt-Strategy. Domestic debt service in 2018 was K8.20 billion compared to K5.5 billion in 2017.
At the close of 2018, total domestic arrears stood at K15.1 billion. 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.
Public debt has in the recent past attracted a lot of debate. The government remains committed to moving back the debt to moderate risk of distress and to meeting debt its obligations, the economic highlight report carried.