LUSAKA: Zambia has assessed its debt trajectory as part of a bid to court International Monetary Fund support after the Fund rejected the country's debt management plans in February.
The analaysis provides a basis for fresh talks with the IMF on a possible financial assistance programme, the finance ministry said on Tuesday in a statement that gave no figures.
The economy is expected to sustain growth of more than 4 percent this year helped by its mining, agriculture and construction sectors.
Zambia is Africa's second-biggest copper producer but the government faces pressure to rein in spending, especially as it heads towards a 2021 presidential election in which President Edgar Lungu is expected to run for a second full term.
"Cabinet will be briefed on the outcomes of the exercise and on the executive decisions that are required to be undertaken to successfully finalise the engagement with the Fund," it said.
"We will implement the decisions particularly as they relate to the success of our debt sustainability actions," it added.
The government said last month its $8.7 billion foreign debt was not understated. Eurasia Group said in a note on Friday Zambia may be facing fiscal challenges and was likely to default on its debt payments starting in 2019.
The ministry of finance said on Tuesday Zambia had never defaulted on its foreign debt and eurobond interest payments and did not intend to do so.
Finance Minister Margaret Mwanakatwe said restructuring Chinese debt was an option that could be taken.[ L8N1RR0RN]
Zambia wants a $1.3 billion loan from the IMF but analysts Moody's Investor Service said in April the chance of a deal depends on how to reconcile debt management plans.
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