Establishing a sinking fund now a binding issue – Mphuka

Economist Chrispin Mphuka says Zambia’s economy can only return to growth in the medium term if government commits to the current austerity measures.

Dr. Mphuka says it is important the economy is brought back to growth in order to help government revenue collection mechanisms.

He is of the view that if the economy rebound and begun growing in a very robust manner above 7 percent, government can have the leverage of refinancing the first sovereign bond.

In an interview with QTV News by telephone Dr. Mphuka who is also former  Economics Association of Zambia (EAZ) president, says this means that establishing a sinking fund has now become a binding issue.

Dr. Mphuka is urging government to make a much definite effort in establishing the fund to enable it pay the debt in full at the end of the refinancing period.

And Dr. Mphuka has also called on the government to publicize the terms for the refinancing of the US$750 Eurobond it wants to pursue using a Turkish private equity.

He says it is in the interest of transparency and accountability that the Zambian people know what the terms of this refinancing are.