Posts
The World Bank has censured the Zambian
government on the need for prudent investment of resources from the recently
obtained US$ 750 million sovereign bond.
The Bank says the fact that the bond is a
commercial debt, must present a challenge for the government.
In a statement, the World Bank has
therefore proposed effective and transparent investment of the money into
sectors, with the highest return, to provide lasting benefits for the people of
Zambia.
The bank’s regional Director, Kundhavi
Kadiresan has further observed that Zambia has a peculiar state of two extremes
of social-economic situations, the noted high economic growth and high
unacceptable levels of poverty.
She therefore says the country has a wide
spectrum for investment of resources from the bond.
Meanwhile, the World Bank has also stated
the need for a careful medium-term strengthened debt management strategy, to
avoid another debt trap.
Zambia has recently mobilised a US$ 750
million loan, through the floating of a sovereign bond, which was heavily
over-subscribed.
The bond has a decade long repayment
period at an interest rate of at least 5.4 per cent.
No comments:
Post a Comment