The Honorable Minister of Finance Felix Mutati said in Lusaka today that the 2017-2019 Medium Term Debt Strategy – MTDS would target altering the current 45%:55%, domestic – external debt mix to 60%: 40%.
Achieving this, the Ministry of Finance would maximize on concessional external borrowing. The loans and guarantees act cap 366 of the laws of Zambia would be the mandate used for the administration of the strategy. Government will maintain use of domestic debt for financing its needs and also for the development of the capital markets Issuance of government paper will determined by the net planned borrowing less debt repayment. Financing and borrowing requirement will be advised by fiscal policy and macroeconomic framework for the medium term. This will then determine auction size and will guide government securities calendar.