Zambia’s domestic and external debt for the year 2013 is projected to reach 37 percent of the country’s GDP.
Speaking this morning at media briefing, Sectary to Treasury Fredson Yamba, said in the continued discussions with the International Monetary Fund (IMF), held from the 17th to 24th of September 2013, it has also been agreed that the fiscal deficit for 2013 will be higher than was projected.
Mr. Yamba has told journalists that from the discussions which are a continuation from the IMF July 2013 mission, government and the IMF have agreed on the broad medium term goals of economic policy aimed at maintaining strong growth, lowering the budget deficit and maintaining low inflation.
Mr. Yamba notes that these measures are in line with the strategic priorities of the government’s Medium Term Expenditure Framework (MTEF) that has take cognizance of the tight fiscal pace available.
Speaking at the same media briefing, IMF mission Chief John Wakeman-Linn observed that to maintain strong economic growth, it is important for the country to safeguard competitiveness and build buffers against external shock.
Professor Wakeman-Linn says competitiveness would suffer if the higher wages currently being introduced by the government in the civil service do not match with higher productivity.
The IMF Team will return to Zambia in January, 2014 to initiate program discussions which are being held under Article four of the Articles of Agreement of the IMF.
these 1diots are pushing us back into a debt trap. we thought this is the time we should grow our own capacity in terms of the economy and self sustaincy but unfortunately we now have debt after debt to finance unproductive bye elections. this is the result of putting grade sevens in government as your leaders just because they are your tribesmates. shame on such voters
We are heading back again to $7 billion debt at sputnik speed. Does the govt know what it’s doing? If only half of the creditors demanded payment now we would simply fold and resume our status once again at the bottom rung of the most impoverished nations on earth.
Debt, debt; in whose pockets does it end up? It is a shame the debt-overhang is growing again. Can someone stop the toothache.
Whose supposed to pay for it? Zambia to remain colonised for the 75 billion years to come, has anyone any idea or practicle strategy of how these debts will be paid? Sata, Mumba, HH, anyone please? You’ve guessed right Zambia is doomed!
The speed at which we are accruing debt is threatening. This is because the PF is paralyzed by the leadership of MCS. See even if any knows how to correct the rot they dare not challenge the blind and haphazard leadership MCS.
Is this not the same F.O.O.L who found so much idle money to pay salaries? He now says the deficit will be more than project..
The PF F.O.OLs never stop amusing…
Yamba has just confirmed what the ZWD has continuosly reported on .When the reports about PF being broke first came out most PF zealots including Yamba and Chikwanda refuted them, saying PF is not running a huge deficit.
Knowing the PF ‘s BUFI games the deficit might even be higher than 37%. I can rightly guestimate it to be around 57%.
These PF fools are stealing our childrens future!
The old medical tourist is only interested in his own 150% salary increase and building his retirement home, plus unbudgeted taxpayers money for his wife, not Zambias future.
When Zambia has to pay back the money he has squandered he will dead, and there will be NO debt forgiveness this time around.
Impeach him NOW before generations of Zambians are condemned to work as slaves to pay for his stupidity
Its unconscionable to hand over to our kids a worse,poorer zambia than was handed over to us. Really troubling.
Too bad our country is hearding to the worst. First of all the1. By Elections drain us of our Coffers and 2. The Unplanned and unbadgetted for 200% Salary increments. Who will pay for that? Tax payers of course. Damn, our country is headed for doom coz when are we going to finnish paying for that as we fight hard to elevate poverty? Yours to answer.
Here it is Blogers Anaylse on your own
Government debt as a percent of GDP, also known as debt-to-GDP ratio, is the amount of national debt a country has in percentage of its Gross Domestic Product. Basically, Government debt is the money owed by the central government to its creditors. There are two types of government debt: net and gross. Gross debt is the accumulation of outstanding government debt which may be in the form of government bonds, credit default swaps, currency swaps, special drawing rights, loans, insurance and pensions. Net debt is the difference between gross debt and the financial assets that government holds. The higher the debt-to-GDP ratio, the less likely the country will pay its debt back, and more likely the country is to default on its debt obligations.
I knew it. That idle money they mopped to finance public workers’ salaries was unutilized project money for departments. It was supposed to be revolved back into production. When IMF strikes, it will be very, very tough…..back to the woos of SAP.
We have a debt load of 37% of GDP and our budget is only a measly $US4b of which a good percentage is foreign aid.Thats unhealthy and unsustainable and i’m not sure PF even know what they’re doing.We’re doomed to poverty with these grade 7s.
Zambia is not going anywhere with this PF regime which Nason Msoni has characterised as a tribal militia. This is a regime that is here to loot. Zambia should only be spending money that it has and keep debt at 25% below GDP. This was the policy pursued by Magande and Musokotwane. Chikwanda is a weakling who is been bullied by his relative to spend money that is not there hence the heavy borrowing. We even have the so called first lady been illegally allocated money. This sucks!
Running a country like a tavern,Sata isn’t fit both mentally and physically to rule a country,we shall auction muchinga to the lenders when they knock on our door!
Haha,ati auction muchinga to pay the lenders…i like that.
Thanx ba Zambian voice,ninshi naizanda already.Mwatutinya sana
Are you not the same who even bought a pen to make sure your ink didnt disappear chanda chimba the III tried to educate you but you said apapene fye tule vote this time its welalila ashi.
Debt s good but only when u use it on cspital projects not consumables. The money is with the bank and if ua scared to borrow u will not develope.