Zambia Seeks US$760 Million Supplementary Budget

The Government of Zambia is seeking a supplementary budget of US$760 million (K9.8 billion) predominantly in order to finance debt repayments.

Around two-thirds of the amount is needed for foreign and domestic debt repayment following the depreciation of the Kwacha against the dollar.  Much of the remainder would be used to cover higher than projected external debt service in the first half of the year.

Addressing parliament Minister of Finance Bwalya Ng'andu explaining that the external debt servicing projections for the 2019 budget had been calculated using an exchange rate of K10.5 to the dollar. However, the rate has risen to K12.3.

Zambia’s external and domestic debt stock stood at US$10.23 billion at the end of June 2019.