Everyone can now agree Zambia is headed for debt distress – Saasa

Economist Oliver Saasa says he does not see any investments that Zambia has made that will enable it immediately service the US$ 3 billion debt it owes from issued Eurobonds .

Professor Saasa has observed that the investments that the Country has made in road infrastructure, for example, may not yield the sort of return that will service the debt when it falls due.

In an interview with QTV News by telephone Professor Saasa thinks that everyone can now agree that the Zambian economy is headed for a debt stress.

Professor Saasa says this is mainly because the Country has not prepared adequately to repay the three Eurobonds.

He states that it is important however for Zambia to be clear of how it will manage the repayment of the first Eurobond of US$ 750 million.

Professor Saasa notes that refinancing of this Eurobond is palatable under the current circumstance but that what matters is the process of refinancing itself.

He says the legitimate question that should be raised with the Turkey option is whether or not Zambia has scouted the market to ensure the Country does not end up with a vulture fund.

Professor Saasa is suggesting that government ensures that Zambia does not make the mistakes it did in the past.

He has encouraged government to look at various options of refinancing the US$ 750 million Eurobond by floating it as opposed to single sourcing.