Monday, August 08, 2011
By Ndinawe Simpelwe
Mon 08 Aug. 2011, 11:59 CAT
ZAMBIA will delay the sale of its planned US $500 million Eurobond until after elections in September, says central bank governor Caleb Fundanga. Fundanga told Bloomberg that the debt could only be handled when there was a Cabinet in place.
“The matter has to be put on hold. It requires a Cabinet process to move it forward,” Fundanga said. According to the then finance minister Situmbeko Musokotwane,The Eurobond was to be sold by the end of this month. Zambia is looking to raise funds to build new transport links, and generate and transmit more electricity to the copper mines that drive the economy.
On March 22, Standard & Poor’s assigned the country a B+ credit rating, the fourth-highest grade, with a stable outlook the same as that for Kenya, Nigeria and Paraguay.
“Zambia’s economy remains robust, with mining and agriculture showing expansion, and is unlikely to be disrupted by the election,” Fundanga said.
He, however, said there may be a slight delay in the 2012 budget presentation that was scheduled for October.