The Jesuit Center for Theological Reflections (JCTR) says the Proposed Refinancing Strategy of US $750 Million Eurobond Might Lead Zambia into a Sovereign Debt Crisis.
The center also says the planned engagement of a private company to pay off Zambia’s US$ 750 million Eurobond is a disaster in-waiting.
In a statement issued to the media, JCTR Social and Economic Development Programme Manager Andrew Simpasa says JCTR is apprehensive with regard to use of a private equity to refinance the country’s Eurobond as the cost of the external debt might become too exorbitant to bear in the medium to long-term.
Mr. Simpasa says this might further exacerbate the country’s foreign debt which currently stands at a staggering US$9.3 billion.
He acknowledges that there is an urgent need to restructure Zambia’s external debt to thwart a possible default.
Mr. Simpasa says JCTR strongly objects to the proposed strategy to refinance Zambia’s Eurobond due in 2022 by way of private equity especially that the terms and conditions of this proposed transaction are not publicly known.
The JCTR Social and Economic Development Programme Manager has since appealed to government to undertake a prudent and comprehensive risk assessment of the proposed and impending public debt refinancing option and ensure that the country’s sovereign assets are securely covered from being sequestered by vulture funds.