By JUDITH NAMUTOWE –

THE Government has said it will consider recommendations by the Zambia Institute for Policy Analysis and Research (ZIPAR) on the repayment of the two Eurobonds.
ZIPAR recommended that the Government should set up a “Sinking Fund”, contain public expenditure and refinance one of the bonds to reduce risk of defaulting on the two bonds.
Finance Permanent Secretary Pamela Kabamba praised ZIPAR for pulling off the sovereign bond study whose recommendations would be valuable in sharpening measures to mitigate the risks associated with repayment of the two Eurobonds.
“The report has highlighted pertinent recommendations which government appreciates and will critically consider,” she said.
Ms Kabamba said this during the launch of ZIPAR report titled “A Cautionary Tale of Zambia’s International Sovereign Bond Issuances.”
In the report ZIPAR says the Government should consider setting up a Sinking Fund to help repay the two bonds in 2022 and 2024.
The Government borrowed US$750 million in 2012 and US$1 billion in 2014 from the international finance markets whose interested is expected to gobble in excess of US$125 million each year.
Ms Kabamba  praised ZIPAR for pulling off the sovereign bond study whose recommendations  she said would  be valuable in sharpening measures to mitigate  the would risks associated with repayment of the two Eurobonds.
“It cannot be overemphasised that Government is willing and ready to work with various stakeholders, think tanks alike such as ZIPAR in our quest to ensure that the risks that may rise from issuance of two sovereign bonds are minimised and ensure credibility and integrity of the country is upheld,” Mrs Kabamba said.
Ms Kabamba said expert knowledge sharing of experience and collaborations with various players was key in ensuring that finance for development decisions were backed with evidence-based research.
ZIPAR executive director Pamela Nakamba-Kabaso said at the same occasion that the report makes it clear that Zambia had only limited experience of borrowing from international markets; as such it could learn lessons from experienced countries.
The 34-page report states that in the last six years 15 African countries have obtained the Eurobonds amounting to $16 billion.