Lusaka - Zambia is headed for a debt crisis unless it curtails its over-spending, according to the World Bank.
“Further efforts are needed to improve budgetary controls and better withstand fiscal pressures if the national debt is to remain at sustainable levels,” the WB said in a report.
The warning comes at a time Zambia has been engaging the International Monetary Fund (IMF) for a $1.6 billion loan in a three-year credit facility to help address a budget deficit of around 7 percent.
The country has been talking about getting IMF aid since 2014 but an agreement has been delayed by two presidential elections, which made the required reforms politically unattractive.
Zambia began talks with the IMF about a potential loan package after agreeing that its budget deficit was not sustainable.
Africa’s second-biggest copper producer has suffered from the steep commodity price drop of recent years.
