Zambia dismisses think-tank report on fiscal challenges, default risks

LUSAKA, May 9 (Xinhua) -- The Zambian government on Wednesday dismissed a report by an international think-tank that the southern African nation was facing fiscal challenges that may make it default on its foreign debts, including Eurobond repayments.

Eurasia Group, a New York-based political risk consultancy firm, was recently quoted as saying Zambia's external debt was likely higher than official figures and that although the risk for default was low in 2018, it will increase substantially in 2019 and 2020.

But the Ministry of Finance said the report was not true, saying the government has so far been transparent in revealing its debt situation as well as made commitments on its repayment plan.

"We therefore appeal to stakeholders to desist from publishing unverified data as such actions have the tendency to mislead the general public and cause unwarranted worry among investors and cooperating partners," the ministry said in a statement.

It added that the varying numbers and guesses on the country's debt situation were mere presumptions and speculative, adding that the ministry was ready to engage and provide fiscal and debt information.

The government, according to the statement, has no intention to default on its debt obligations as adequate measures have been put in place to ensure that the government fulfills its obligations when the repayments fall due.

The Medium-Term Expenditure Framework, covering projections on all economic and fiscal numbers over a three-year horizon, also provides a projection of fiscal operations and debt service, it added. Enditem