Economics
Zambia’s Debt Build-Up Continues Apace Despite IMF Warnings
- Country contracted $2.6 billion of new external debt in 2018
- IMF has warned Zambia is already at high risk of debt distress
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Zambia, which the International Monetary Fund has warned is at high risk of debt distress, contracted an additional $2.6 billion of new external loans last year, according to the Finance Ministry.
If the funds are disbursed, they’ll increase the southern African nation’s external debt to $12.7 billion, from $10.1 billion at the end of 2018. The new loans suggest the government is too complacent about rapidly increasing debt risks, Gregory Smith, fixed-income analyst at Renaissance Capital in London, said by email.