LUSAKA, Oct. 29 (Xinhua) -- The Zambian government on Monday asked the International Monetary Fund (IMF) and the World Bank in building the country's capacity in debt management.
Minister of Finance Margaret Mwanakatwe said the two institutions should help the country in further strengthening the fiscal position by improving debt management capacity, increasing domestic resource mobilization and deepening local capital markets.
The Zambian minister said the government was in agreement with the concerns of development partners that debt vulnerabilities over the last few years pose a risk of reversing the benefits of earlier debt relief initiatives.
The Zambian minister revealed that she will be presenting specific details on the implementation of austerity measures related to debt within the current session of parliament.
According to her, the country has this year paid over 800 million U.S. dollars in debt service but noted that the government has not defaulted on any of its debt obligations.
"We are aligned with the view that in light of our debt vulnerability, there is need for greater collaboration to enhance debt transparency and sustainable financing practices. We also note the need to strengthen credit or coordination in debt restructuring and liability management situations," she said.
Zambia's foreign debt, believed to be around 9.3 billion U.S. dollars as of June this year, has been of serious concern, with the IMF warning that the country was at risk of a debt distress unless measure were put in place to contain the debt.
