Zambia’s external debt has swelled to USD 2 billion and 250 million after Zambia borrowed $750 million through a Eurobond two days ago.
Ministry of Finance Acting Director for Investments and Debt Management Fortune Kamusaki told Journalists in Lusaka that the USD 750 million bond forms part of the already existing USD 1.5 billion external debt.
Dr. Kamusaki explained that the external debt is mainly made up of concessional and non-concessional loans.
Late president Levy Mwanawasa and his his finance Minister Ngandu Magandu laboured succesfully to remove Zambia’s $7 billion external debt which was accrued mostly in the first ten years of the MMD.
Mwanawasa and his team managed to have Zambia’ s debt written off completely.
With these new terminologies of Eurobonds, Zambia is headed into another debt trap which coming government will have to pay back.