Find us on Google+

Tuesday, 5 November 2013

Debt Watch (Saudi Arabia)

The government recently signed two loan agreements with Saudi Arabia worth $40m to buy urea fertiliser ($20m) and renovate the University Teaching Hospital ($20m). This is the third loan agreement with the Saudi Fund for Development under the Patriotic Front government.

Zambia has witnessed unprecedented speed of borrowing over the last two years. Since PF came to power Zambia's external debt is nearly three times what it was 2 years ago. In 2012 alone, Alexander Chikwanda borrowed a staggering 14 times abroad!

The new budget projects over $1.3bn (K7bn) dollars of external borrowing (foreign finance) - and possibly more given PF's inability to manage public finances, as evidenced by its doubling of the fiscal deficit in 2013 . GDP growth in 2013 is predicted to decline by 1.3% further reducing the debt sustainability envelope.

AUTHOR
Chola Mukanga | Economist
Copyright © Zambian Economist 2013

No comments:

Post a Comment

All contributors should follow the basic principles of a productive dialogue: communicate their perspective, ask, comment, respond,and share information and knowledge, but do all this with a positive approach.

This is a friendly website. However, if you feel compelled to comment 'anonymously', you are strongly encouraged to state your location / adopt a unique nick name so that other commentators/readers do not confuse your comments with other individuals also commenting anonymously.