Government, through the Ministry of Finance, has maintained that Zambia’s external debt currently stands at approximately four point two billion US Dollars (US$4.2 billion) including the Euro Bond.
Ministry of Finance Public Relations Officer, Chileshe Kandeta, has told QFM News in a treasury brief that at this level the ratio of Debt to GDP is about 17.8 percent of GDP, which he believes is way below the internationally agreed sustainability level of 40 percent.
Mr. Kandeta says government is however mindful of the need not to fall back in a debt trap and will therefore be careful with any future borrowing to ensure sustainability and investment of any borrowing in high return growth areas.
Mr. Kandeta has also revealed that fforeign reserves currently stand at approximately US $3.5 billion from US $2.7 billion which is around 3.8 months of import cover and that the goal is to go to four months import cover in medium term.
He states that in terms of interest payment, Zambia is paying US$42 Million annually on the first US$750 Million Euro Bond and US$82 Million per annum on the new US$1 billion Bond.
He adds that the bonds will be repaid back as a bullet repayment in 2022 and 2024 for the US$750 Million and US$1 billion Bond respectively.
He furthermore adds that in terms of preparing for repayment, the Government is in the process of establishing a sinking fund for the Bonds.
Mr. Kandeta has however noted that the copper price is slowly improving; currently it is just below seven thousand US dollars (US $7,000) per metric.
Such lying makes some cynics like me wish this government loses the 2016 elections so the gross mismanagement and true debt levels get revealed by the next government. If it was to be proven that all these rosy figures we are being feed is a pack of lies, someone will have to pay for the shortfall.
” Ministry of Finance Public Relations Officer, Chileshe Kandeta, has told QFM News in a treasury brief that at this level the ratio of Debt to GDP is about 17.8 percent of GDP, which he believes is way below the internationally agreed sustainability level of 40 percent. ”
Translation: Zambia could easily have a debt of $8 billion, and still be “the internationally agreed sustainability level”.
This is insanity.
What if the copper price collapses? Does anyone in government think for themselves, or do they just let the IMF tell them what to think?
Optical Illusions.
Someone should remind this Chileshe dude that Zambia’s debt is almost double the $4.2 billion he says Zambia owes. For example the recent $1 billion Euro bond is worth another $840 million in interest repayments at 8.4% on the principal for the next 10 years.
Its no surprise these empty tins in MOF and BOZ are going back to the devil himself World Bank and IMF to ask for advice, in all honesty what can these institutions teach us.Do you honestly think if the BRIC countries took IMF and World Bank advice they would have prospered and be where they are today. If Russia listened to the devil all her oil and gas fields would have been in the hands of western oil companies.
Wake up!!
“Zambia’s current external debt stands at US$1.2 billion”
Time Posted: March 4, 2010 11:07 pm (LusakaTimes) It’s gone up by $3billion in 4 years or $750m a year which represents over a $1billion a year since PF took over. In real terms this means that the PF will drag us into debt for over a billion dollars per annum through out their tenure. More money in the lenders pockets and glaring holes in ours!. You talk about the copper prices recovering but what has that got to do with us when we see nada from our own Mother Nature God given mineral resources? We are aware of how the country has been duped of billions of dollars from the so called “infestors” Yes! we have been infested! It’s all on the web for any one to read! Copper is a wasting asset – period!
Oh ! Not as bad as i feared.It is almost the market value of Lionel Messi.
Really laughable as if we didn’t know the repayment terms of the bonds…its what these empty tins are not telling us is what we are interested in.
Sata must be smoked out of hiding. People like Mumba Kapumbe should have been there for us to prevail on this economic liability called sata, alas even such dependebles are here to have a goal at situation that requires sympathy. All the grey haired have ganged up, taking turns, raping the economy.
Debt is the new 21st century slavery and Zambia now has $4.2bn masters.Without a doubt,bwana Chileshe ,there’s no such thing as “sustainable slavery”
Ati “sustainable slavery” ….thats a good one and very true.
Zambia is repaying US$42 Million annually for the 1st eurobond, yet no one can point to anything tangible that this debt-entrapment has produced. Hon. Chikwanda is for a 2nd time putting us through the suffering we endured in the 80’s. He was minister of finance when Zambia borrowed $6bn in the UNIP era.
I agree with u Onion G. This old dinosaur won’t even be there when we start going through I.M.F. SAP (structural adjustment plan). I here they’re coming to zambia in September.
Lets move fast from these lies. God help us. Let 2016 comes early so that these guys can go. Its enough of there lies.
Take a good close look at the old man and his cabinet….will these pensioners be around in 2022 or 2024; Fossil Chikwanda, Guy Scott, Fackson Shamenda, Bob Schinga etc…these people can not envisage it hence merely boring for the next election never mind the prepayments.
*…. borrowing…
That is just toooooooooo much! we failed to pay 3 billion until we were declared HIPC. So how have we re borrowed sooooooooo much dough? Niba MMD naba PF
We are only paying interest right now but are having problems. How could we pay the principal amounts when time comes when we are having problems with small amounts? Why have we been allowed to pay interest only? It is not responsible. This would put future generations in financial trouble.
Critics always make noise like empty tins. You complain zambia is under developed, no employment, bad school/hospital too many traffic accidents we need good roads. Kenneth Kaunda international Airport looks like gost airport. Zambians you are full of talking and no tangible solutions to offer. UK, USA and other developed countries borrowed to develop. Where are all these things coming from if the govt does not borrow to develop? Someone people on LT are more less like bush products who can not argue with their brains but with empty words. Let PF do what they are doing and if the fail to account for the money thay are borrowing, arrest them for misusing the govt money. Many people are happy with road infrastructure, hosp, school and many more. Judge PF after this ter
Ba Pafwenamwine correction: UK and US (most of Europe) did not borrow to develop. They used slave labour and colonisation to develop their countries. But fimofimo ifyo mwalanda fyachine.
“preparing for repayment, the Government is in the process of establishing a sinking fund for the Bonds”
More like “preparing for non-repayment, the Government is in the process of establishing a sinking boat and for stealing the funds!”
What is on the other side of the balance sheet? What has the country got to show for the colossal $4.2 billion of debt?