An Economist says Zambia’s debt is expected to balloon as a result of the ongoing construction works by Chinese contractors.
Speaking in an interview with Money FM, Chibamba Kanyama says there are projects that have been contracted by government that have not been funded which are being captured as external debt.
He says as long as government is not paying the principals debt, but interest debt, the county’s debt will keep rising.
He says there will be no much reduction in the country’s debt as long as the country continues to pay interest rates.
He says government commitment to service the debt is putting pressure on the treasury and financing all other needs of the country which is also affecting local debt dismantling.
He says the treasury bills are under subscribed as a result of the debt.
He says there is therefore need for government to find money to repay the debt because the pressure is so critical and evident.

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