Secretary to the Treasury Fredson Yamba has dismissed predictions that the country will default in repaying its Eurobonds.
Mr. Yamba says the country will be able to make its first interest payment as well as repay the three Eurobonds.
He says this is why government has created a sinking fund in which money will start put next year.
Mr. Yamba notes that contrary to assertions that the sinking fund has been created late, it is not too late as the fund will be able serve the purpose it has been created for which is saving money for repaying the Eurobonds.
He explains that what the country has borrowed so far including the three Eurobonds is within the country’s projected borrowing figures and is within the country’s ability to repay back.
Mr. Yamba says there is no need to fear that the country might default in repaying the three Eurobonds as this is something that was planned for and is continuously being accessed.
He further states that apart from the sinking fund, government is also looking at other options such as refinancing debt among others that would help repay back the debts.
Mr. Yamba,
Are you already preparing another bond issue? If not, what are you sources of funds to service previous bonds? Printing extra Kwacha? Or adopting USD as legal tender?
Please stop insulting human intelligence. Your “expertise” (lol) in so far has been absolute failure. Talk is cheap, prove us wrong and do something to stop economic decline.
chi yamba as usual the so alled educated are the dullest zambians. just a bunch of regurgitators. it will be this same i.diot when we fail to pay, who will say, it is not our fault as the world economies are all falling apart due to the looming crisis from china. just like now, these same i.diots are saying its not our fault that we had poor rainfail in the current load shedding crisis. A thorough manager does risk analysis. Risk = probability of occurence of an event X Severity of that even should it happen: so can these i.diots tell us which part of the rain patterns did they not understand to account for probability and what consequences did they not forsee should the rainfall be low? Zambians mu vota shani kanshi?
Can you ministers please impeach the president before the country sinks like the “sinking fund” that Mr Yamba is hoping to create next year. Just call for early elections before its too late.
“He says this is why government has created a sinking fund in which money will start put next year.” When next year? After leaving office? All lies!!
I am JEVIK Phiri, I have borrowed K800,000 interest included for two capital projects. K400,000 is for building a mansion (by Zambian standard) and K400,000 for buying a brandy new Toyota Hilux double cab, zero milage. This loan is payable in three installments in 2025, 2026 and 2027. My monthly net salary is K25,000. I tell my family that for the next ten years we shall not undertake another big project apart from these two. Of my net pay, K10,000 is deposited monthly into the “sinking fund account” and the remainder for home consumption. My calculations show me that by 2025, I my sinking fund account will have K1,000,000 available for repaying my loan and set my family free from inkongole.
Except for the fact that you have forgotten, and that is that by that time your “sinking fund” of K1,000,000 will not be enough to buy you a bag of mealie meal, and the creditors will want payment in US$.
Yeah, you cannot default because we pay taxes to you dummy!
Yes a “Sinking Fund” for the “Sinking ichibwato!!” LOL!!
The Case of Zambia’s Debt History ,Surplus years and funds/reserves created then ,the risks in velocities and multipliers in gov funding/spending against private thinking through the recession that the economy can go under especially the accelerated growth from the current infra spend especially the scenario of debt reduction given the surplus or deficit then in nominal and real terms
Then invest in blue chip stocks risk adjusted and create some gold standard in fiat money and avoid the dangers of QE eminent
A fund invested with a careful strategy that minimises the “‘swap”‘ in risk on those bonds and returns invested netting off with some surplus return
Yamba, wishes are not same as the facts. Fact is our income does not match our expenditure, therefore nothing will go into the so-called sinking fund because we will always have the deficit in our budget and this next year, we will be issuing another Euro Bond to bridge the gap again.
The position of ST is supposed to be proffessional & not cadre. Dr Musokotwane as ST spoke rarely but when he did he never sounded so hollow.
Maybe MCS should have made Dr Ng’andu ST instead of sending him to Muchinga.
The idea of sinking fund is good as it avoids a sudden pressure that have effects on sustainable growth of the country avoiding recession arising from Gov slump in local expenditure Its a good thing but then matching those funds in investing well diversified will create that match to ensure growth registered translates into the meaniful surplus on which to roll the progress of Zambia’s economy
Though its important to plot Debt against surplus or deficit over the years with growth and cycle of the income and see what it will be like when we reach there
Reading from Mr Yamba commentary, that is what he seems to be saying and mindful of the borrowed growth…
The basic advise on value investing still holds buying cheap with margin of safety over the long-term view avoiding the herd even for the these sinking funds in these bonds