Government, through the Ministry of Finance, has maintained that Zambia’s external debt currently stands at approximately four point two billion US Dollars (US$4.2 billion) including the Euro Bond.
Ministry of Finance Public Relations Officer, Chileshe Kandeta, has told QFM News in a treasury brief that at this level the ratio of Debt to GDP is about 17.8 percent of GDP, which he believes is way below the internationally agreed sustainability level of 40 percent.
Mr. Kandeta says government is however mindful of the need not to fall back in a debt trap and will therefore be careful with any future borrowing to ensure sustainability and investment of any borrowing in high return growth areas.
Mr. Kandeta has also revealed that foreign reserves currently stand at approximately US $3.5 billion from US $2.7 billion which is around 3.8 months of import cover and that the goal is to go to four months import cover in medium term.
South Africa Today Africa – Africa News Southern Africa Zambia
