Finance Minister Margaret Mwanakatwe says government has defined a Eurobond redemption strategy that will establish an optimal plan for redeeming Zambia’s bonds.

Zambia has to date issued three Eurobonds amounting to US$750 million in 2012, US$1 billion in 2014 which are due to be paid in 2022, 2024, respectively, while the US$1.25 billion issued in 2015 will be due for repayment in 2027.

Delivering a ministerial statement in parliament, Ms Mwanakatwe says once this redemption strategy is approved by cabinet, it will be made public.

Ms Mwanakatwe has emphasized that the government has a full view on handling of the bonds and is committed to the repayment of its liabilities.

“We are thus cognisant of the need for a structured redemption plan that will ensure transparency and smooth processes for handling the redemption of the Eurobonds,” she told parliament.

The Finance Minister says the Eurobond refinancing strategy gives an array of options that involve debt buy backs and refinancing options.

“I must point out that refinancing is a market practice that is not peculiar to Zambia and is consistent with the need for Zambia to have an instrument in the international capital markets that can be used to signal risk for the private sector. Mr. Speaker, as we are undertaking these asset and liability management processes we are cognisant of the need for the country to maintain a stable macroeconomic environment, credible debt data, fiscal sustainability and a favourable credit rating,” she said.

Ms Mwanakatwe has maintained that the stock of external debt is us$ 9.37 billion adding that this represents 34.7% of GDP and was below the internationally agreed threshold of 40%.

“The stock of domestic debt, in form of government securities, is K51.86 billion. This represents 19.2 % of GDP,” she said on the floor of the House.