Zambia has deferred the receipt of loans aggregating US$2.6 billion contracted last year in order to rein in its soaring debt, according to Finance Minister Margaret Mwanakatwe. Zambia’s external debt at the end of the first quarter of this year had increased to US $10.178 billion from $10.05 billion at the end of 2018. It was $8.74 billion at the end of 2017. The loans approved last year was for infrastructure, energy, agriculture, health, education and defense. Close to 25 loans had been in the pipeline from 2016 to 2017 but only reached financial closure in the first and second quarters of last year. The International Monetary Fund (IMF) has repeatedly warned Zambia about the mounting growing debts and shrinking foreign exchange reserves. In 2018, Zambia’s fiscal deficit reached at 7.5% of gross domestic product (GDP), higher than an earlier government projection of around 7%.
