Minister of Finance Margaret Mwanakatwe has maintained that refinancing of the Eurobonds with a Turkish firm is not in a sign of failure to repay
Mwanakatwe says the government remains fully committed to meeting all its liabilities on time and in full.
She said in a statement released Monday morning that a repayment strategy has been developed for the three Eurobonds.
Mwanakatwe stated that the strategy is currently undergoing review and approval by Cabinet and that the government is also in the process of engaging financial advisors on implementation of the same.
She further pointed out that refinancing of the Eurobonds seeks to achieve lower costs and longer maturities with potential investors.
Mwanakatwe has however promised that the exercise will be done in full consultation with the bond holders and in line with international market standards.
She stressed that government however remains open to cheaper options that may be proposed by private and bilateral partners.
President Lungu on Saturday requested Turkey to help Zambia repay a $3 billion dollar Eurobond.
The PF government went on a borrowing spree immediately after gaining political power in 2011 and contracted a $750 million dollar bond in 2012, followed by a $1 billion dollar bond in 2014 and another $1.5 billion dollar bond in 2015.The country is expected to start repaying part of the Eurobonds in 2019.