The Proposed Refinancing Strategy of US $750 Million Eurobond Might Lead Zambia Into A Sovereign Debt Crisis

The planned contraction of a private equity to amortize Zambia’s US$ 750 million Eurobond is a disaster in-waiting. JCTR is apprehensive with regard to use of a private equity to refinance the country’s Eurobond as the cost of the external debt might become too exorbitant to bear in the medium to long-term. Regulatory and administrative measures to slow down the growth of the debt stock have been put in place in accordance with the medium-term debt strategy. However, the proposed refinancing strategy of the country’s Eurobond negates against this same principle as it will have the medium to long term resultant effect of pushing back Zambia into being a highly indebted country.