Fri, 29 Dec 2017 10:48:59 +0000 By Buumba Chimbulu GOVERNMENT is 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. Government announced that it has 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. But the World Bank said the sinking fund method to refinance Eurobonds will not work for Zambia due to its persistent large fiscal deficits which makes saving impossible. Minister of Finance, Felix Mutati, however, said the sinking fund, to be established by law, would be set up as a sub account of control 99 where all Government revenue was kept. “Government will still set up the sinking fund because it is by law and you cannot argue with the law. We […]
