Home Zambia News Zambia’s overseas debt is US$11.97 billion

Zambia’s overseas debt is US$11.97 billion

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FINANCE minister Dr Bwalya Ng’andu says Zambia’s overseas debt place, as at June this 12 months, stood at US$11.97 billion.

This is in comparison to america$11.48 billion exterior debt the rustic had, on the shut of closing 12 months.

In his 2021 nationwide price range speech in Parliament on Friday, the minister attributed that debt build up to disbursements on present loans, which can be financing more than a few initiatives within the power, training, highway and well being sectors.

The price range general is 119.6 billion and the federal government initiatives that K68.0 billion would come from home revenues and grants, whilst the steadiness, K51.6, would come via financing.

“The external public debt stock increased to US$11.97 billion as at end-June 2020 from US$11.48 billion at the close of 2019, representing an increase of 4.3 per cent,” he stated.

“The stock of government guarantees, on a net basis, was US$1.58 billion as at end-June 2020. These guarantees are mostly for power projects in the energy sector.”

He stated the inventory of presidency securities larger to K114.3 billion as at finish closing month, from K80.2 billion as at finish December 2019.

Dr Ng’andu indicated that such integrated the COVID-19 bond.

“The increase of 42.5 per cent was on account of the need to finance key expenditure areas such as Farmer Input Support Programme (FISP),” he stated.

Dr Ng’andu additionally knowledgeable the House additionally that the COVID-19 bond proceeds had been used to stimulate financial job via dismantling of arrears, fee of Value Added Tax (VAT) refunds and liquidation of remarkable pension arrears.

In addition, the minister disclosed, the National Savings and Credit Bank were recapitalised to facilitate the availability of financing to small and medium enterprises.

“The proceeds were also used to finance youth empowerment programmes, procurement of medical equipment, drugs and medical supplies,” Dr Ng’andu stated.

Dr Ng’andu, on financial and fiscal efficiency, highlighted that over the primary 8 months of this 12 months, inflation exceeded the medium-term goal vary of six-eight in line with cent, averaging 15.0 in line with cent.

For this month, inflation stands at 15.7 in line with cent.

“Inflation rose to 15.5 per cent in August from 11.7 per cent in December 2019. This was mainly driven by the upward adjustment in energy prices, higher food prices and the pass-through from the depreciation of the kwacha,” defined Dr Ng’andu.

“The commercial banks’ average lending rate declined to 25.8 per cent in August 2020 from 28.0 per cent in December 2019. This was mainly driven by the reduction in the Monetary Policy Rate to 8.0 per cent from 11.5 per cent and the improvement in liquidity levels in the market.”

©Kalemba