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GOVT SETS ASIDE USD $50 MILLION FOR REPAYMENT OF EUROBOND

GOVERNMENT says it has allocated USD $50 million under a sinking fund to facilitate gradual repayment of the Eurobond debt which is due in 2022.

Speaking during the post budget discussion organised by Ernest and Young on Tuesday, October 1, 2019, Ministry of Finance Acting Permanet Secretary Joseph Nonde said government will not default on the repayment of the first Eurobond which is amounting to USD $750 million.

“There will be no defaulting on the Eurobond, despite government allocating USD $50 million in the sinking fund, there are other options on the table to ensure that we don’t default such as refinancing,” he said.

Nonde said government was also developing the 2020 to 2022 medium term debt strategy to ensure financing needs are met at the lowest possible cost, consistent with a prudent degree of risk.

On the possibility of engaging the International Monetary Fund (IMF), Nonde said government is keen to work with the fund in a form to be agreed upon with them.

He said critical for the engagement, is having a sustainable macroeconomic path, which government is actively working on.

“IMF remains critical for providing signal for business as well as investors and other development partners. There are further engagements to vigorous engage the IMF on not just the programme but also on article four consultations and having an IMF advisory representatives in the country,” he said.

He added that government has allocated K2.3 billion for dismantling of arrears, which is an increment from K437 million which was set aside for 2019.

He said there was also need to address corruption perception by enforcing the public financial management act of 2018 and carrying out procurement reforms.

 


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eurobond IMF DEBT REPAYMENT