A team of consisting of the Ministry of finance and the Bank of Zambia has been constituted to develop a framework for the operationalisation of the Sinking Fund.

Then Finance Minister Felix Mutati said government was determined to set up a sinking fund to refinance the Eurobonds despite concerns from the World Bank that the approach will not work following Zambia’s large fiscal deficits.

He announced that it government set aside US$20 million for the refinancing of its three Eurobonds – the US$750 million, US$1 billion and US$1.25 billion – all falling due between 2022 and 2027 respectively.

And Finance Spokesperson Chileshe Kandeta has told Money FM News that the ministry will give an update on the progress of the Sinking Fund during the budget presentation to Parliament later this year.

Mr. Kandeta says the ministry is in the process of preparing the 2019 National Budget hence the progress of the fund cannot be disclosed at the moment.