Investor Presentaiton
4. Main takeaways from the Article IV for Zambia
Accumulation of domestic arrears and backlog of VAT refunds
are significant.
4
Percent of GDP
Public debt has risen rapidly pushed by external debt and the
accumulation of domestic arrears.
Total Public Debt
Domestic debt
ווןווי
0
घ
70
8
60
50
40
Public External Debt
Stock of domestic arrears
0
70
60
च
50
-8
-8
40
30
30
-12
-12 20
20
10
10
-16
-16
0
0
2012
2013
2014
2015
2016 2017
Prel.
Proj.
2012 2013 2014 2015 2016 2017
Prel. Proj.
Cash deficit Arrears & VAT refunds Commitment deficit
Sources: Zambian authorities and IMF estimates and calculations.
.
Public debt has been rising
at an unsustainable pace and
has crowded out lending to
the private sector and
increased the vulnerability of
the economy.
The outstanding public and
publicly guaranteed debt
rose sharply from 36 percent
of GDP at end-2014 to 60
percent at end-2016, driven
largely by external
borrowing and the impact of
exchange rate depreciation.View entire presentation