An Analysis of Public Debt Servicing in Zambia: Trends, Reforms and Challenges

Saungweme, Talknice; Odhiambo, Nicholas M.

doi:10.2478/cirr-2018-0006

Cited by 3 publications

(2 citation statements)

References 6 publications

(6 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The government debt sustainability class is one of the fiscal space categories under which government budget balance (fiscal balance) and public debt accumulation are classified. The public debt ratio for Zimbabwe was volatile before, during, and after dollarisation, and the economy has endured prolonged periods of fiscal deficit compounded by governance failure (Saungweme & Odhiambo, 2018). The literature documents mixed findings regarding the impact of public debt and fiscal balance on NPLs.…”

Section: Introductionmentioning

confidence: 99%

Demystifying the Role of Governance Quality and Fiscal Space on Nonperforming Loans in Zimbabwe

Katuka,

Mudzingiri,

Vengesai

2024

IJIE

View full text Add to dashboard Cite

The paper examines the effects of governance quality and fiscal space on non-performing loans (NPLs) in Zimbabwe. We estimated pooled ordinary least squares (OLS) and quadratic regressions with panel-corrected standard errors (PCSE) and Driscoll-Kraay standard errors using the full dollarisation era dataset for 13 banks from 2009 to 2017. We noted that all the governance indicators are on average negative (bad) and that improvement in the rule of law, political stability and control of corruption stimulates reduction in NPLs if the indicators improve beyond -1.654, -0.876 and -1.361, respectively. More interestingly, the results revealed that an improvement in the interaction terms of political stability and control of corruption with rule of law, governance index and voice and accountability significantly reduces NPLs, which is new empirical evidence in the literature. Regarding fiscal space, we find evidence that fiscal balance positively and significantly affects NPLs. We contribute to the literature by providing new evidence on the role of governance quality in NPLs formation in Zimbabwe, especially when corruption and political stability interact with all governance indicators. We recommend that the Zimbabwean government improve political stability, control of corruption, voice and accountability and the rule of law to reduce NPLs.

show abstract

Section: Introductionmentioning

confidence: 99%

Demystifying the Role of Governance Quality and Fiscal Space on Nonperforming Loans in Zimbabwe

Katuka,

Mudzingiri,

Vengesai

2024

IJIE

View full text Add to dashboard Cite

show abstract

“…First, unlike previous studies that focused largely on the impact of aggregate public debt on economic growth, this study extends the debate to the linkage between public debt service and economic growth. There are fears that Zambia may be using new loans to facilitate public debt servicing, which may not effectively promote its ostensible developmental purpose (see Saungweme and Odhiambo, 2018). Second, the study estimates both the long-run and short-run impact of public debt service on economic growth using one of the most developed econometric technique, the ARDL procedure.…”

Section: Introductionmentioning

confidence: 99%

The impact of public debt service on economic growth: empirical evidence from Zambia

Saungweme

Odhiambo

2020

IJRM

Self Cite

View full text Add to dashboard Cite

This study contributes to the existing public debt service-economic growth nexus by examining the impact of public debt service on economic growth in Zambia using time-series method, covering the period from 1970 to 2017. The study employs the autoregressive distributed lag (ARDL) bounds analysis technique, which permits the simultaneous estimation of the longand short-run model parameters. Overall, the empirical results reveal that the impact of government debt service on economic growth, in Zambia, is time-variant. Whereas the neutrality of public debt service on economic growth is confirmed in the long run, in the short run the relationship is negative. To achieve macroeconomic stability and realise sustainable economic growth rates, the paper recommends that the Zambian government, among other things, undertake active fiscal consolidation to ensure that debt repayments do not cause excessive budget overruns and are not financed from new debt; and continuously improve public debt management strategies and policies to smoothen the government debt redemption profile.

show abstract

Government debt, government debt service and economic growth nexus in Zambia: a multivariate analysis

Saungweme

Odhiambo

2019

Cogent Economics & Finance

View full text Add to dashboard Cite

An Analysis of Public Debt Servicing in Zambia: Trends, Reforms and Challenges

Abstract: The main goal of this paper is to discuss the dynamics of public debt servicing -both domestic and foreign -in

Cited by 3 publications

References 6 publications

Demystifying the Role of Governance Quality and Fiscal Space on Nonperforming Loans in Zimbabwe

Demystifying the Role of Governance Quality and Fiscal Space on Nonperforming Loans in Zimbabwe

The impact of public debt service on economic growth: empirical evidence from Zambia

Government debt, government debt service and economic growth nexus in Zambia: a multivariate analysis

Contact Info

Product

Resources

About