ZAMBIA PUBLIC DEBT RISES SAY INTERNATIONAL MONETARY FUND (IMF)

Zambia at high risk of debt distress.

Public debt in Zambia increased from 36% gross domestic product at the end of 2014 to 60% at the end of 2016. public debt has being rising at an unsustainable pace and has crowded out lending to private sector and increased the vulnerability of the country according to IMF.

It included that the increase of foreign investors in the government market has brought financial constraint which makes the market vulnerable to swing in market sentiments and capital flow reversals. this which will lead to high risk of debt distress which includes its domestic risk (delaying in fiscal adjustment, unfavourable weather condition which affects the hydrocarbons and the agricultural sector and unsustainable debt situation) and external risk (volatility in copper price and global financial condition).

 

Zambia’s public debt is growing unsustainable, making the economy of Africa’s No. 2 copper producer vulnerable to market swings and reversals in capital flows, the International Monetary Fund (IMF) said on Tuesday.

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