A financial analyst has noted that Zambia should take a strategic decision to start unwinding some of its assets in an even that the country has insufficient funds in the sinking fund when the 2022 Euro Bond is due.
Noel Nkhoma says this would be the better option as opposed to defaulting which has greater consequences and implications.
Mr. Nkhoma has noted the need to understand that like an organization, Zambia can leverage on its assets to support a certain cash flow position.
Finance Minister Magaret Mwanakatwe recently told Money FM News that the sinking fund has been operationalized and is currently at 10 million dollars.
The first Eurobond is a US$750 million and was issued in 2012, and due in 2022, the second is a US$1 billion in 2014 and US1.25 billion in 2015.