SELL ‘DEAD’ FIRMS FOR EUROBOND, STATE TOLD

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By FRANK MUKUPA

GOVERNMENT should privatise non-performing state enterprises to raise resources to go towards euro bond if repayment proves a challenge, financial analyst Maambo Hamaundu has said.

He urged the government to evaluate the capability of financing the euro bond and consider privatizing some non-profit making national assets.

Mr Hamaundu said in an interview that if Government was unable to repay the euro bond then it should consider privatising some national assets.

Zambia has three Eurobonds; the US$750 million, US$1 billion and US$1.25 billion all falling due for servicing starting 2021, 2024 and 2027, respectively.

“It is very important that Government begins to look at assets and see which ones can be disposed of in order to meet the debt obligation,” he said.

Mr Hamaundu however said he was not keen that Government should sell off national assets but when the bond repayment becomes due, then there would be need to evaluate some national assets.

“Historically we had an instance 10 or 15 years ago where Zambia had used a mine which was sold at cheaper price and this came because Government was under pressure to sustain that mine.

“In short what I am saying is that Government should avoid selling the national assets lower than their economic value,” he said.

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