The Senate of Brazil has approved up to US$ 90.7 million or 80% of the US$ 113.4 million debt which Zambia owed the South American Economic Giant as at 31st July, 2011.
This is according to a message from the International Affairs Secretariat of the Brazilian Ministry of Finance delivered this morning to Zambia’s Finance Minister Felix Mutati by the Brazilian Ambassador to Zambia Anna Maria Pinto Morales.
“The Brazilian Senate has agreed that the outstanding debt of US$ 113.4 million which Zambia owed should be treated through a special bilateral arrangement whereby 80 percent will be cancelled while 20 percent should be repaid,” read the statement in part.
Commenting on the development, Mr. Mutati said the act of goodwill by the Brazilian Senate is well received by the people of Zambia as it is an affirmation of the good relations between the two countries.
“US$ 90.7 million off our external debt stock is a manifestation of a new beginning in our socio-economic relations and a huge contribution to Zambia’s economic recovery programme,” added the Minister.
And Ms. Anna Maria Pinto Morales said Brazil stands ready to strengthen cooperation with Zambia in capacity building in the agriculture sector, and the school feeding and the social cash transfer programs.
Arrangements are now underway for the two countries to sign the US$ 90.7 million debt relief pact.
Debt write off+more debt = suffocating PF debt trap to Zambians
THATS WHY NDIWE KACHASU….
So basically we are a bad debt. How embarrasing this is surely
Bad debt write off means “bakusula”.
Nothing to be proud of Mr Mutati!
Is this money that Sata got when he went with Chipimo and Nawakwi early in his Presidency? I am surprised that Brazil has time and compassion to write off Zambian debts after the multibillion scandal at Petrobas that saw Dilma Rouseff kicked out of the Presidency.
Another HIPC relief.
Obrigado !!!!
It’s simply embarrassing that Zambia don’t even have that remaining 20%.
If Zambia had ZCCM, they could have paid in copper.
Nostradamus . why dont they pay with Lumwana copper mine.? Africa’s second largest copper mine. oh wait that’s not owned by the government is it.?
“….Mr. Mutati said the act of goodwill by the Brazilian Senate is well received by the people of Zambia….” which people??
EX Zit: People of Zambia and not those who do not want to be Zambians although they were born Zambians. You even have a forum to read about Zambia and reply asking which people? Zambians of course and not you. If you are not Zambian just keep quite and let Zambians benefit from this debt relief. If you do not have debt yourself, you lie to yourself. I am sure you owe some individual, institution, your friends in both monetary or apology terms. Even when you offend someone and you have not apologized, you are in debt.
I asked which people because as a Zambian am not aware of this debt and how it was used. Too much debt fattening few pockets while the majority are wallowing in poverty. Today the cancel the debt and you expect me to smile that its a relief? Be serious electricity will soon be increased while fuel high way too expensive and then you yap ati its a relief, to who???
Bravo EX zit for explaining it in simple terms so that people like Miya can understand. Most likely he or she will not simply because most Zambians like him or her are just plain lazy in terms of critically analyzing any rubbish which is dumped on them and then they turn around and claim ‘we are peaceful’ as an excuse. No people that’s not being peaceful, it’s being PLACCID, LAZY AND DRUNK,,,, which is a sin by the way. So much for the CHRISTIAN nation!!
All those morons who were busy making silly running commentaries on the Watchdog have now shifted to Lusaka Times – full of negativity all the time.
one Zambia,
you are right. These buggers can’t come to terms with the fact that their beloved HH lost and so spend countless hour online full of negativity. Really miss the ZWD as all this would have been there
Everyday talk is just debt, kaloba, inkongole … Awe I am tired of this mwee…..
What was purpose of the debt in first place? How did $90m get in our financial system? For which project? These are questions I feel we need to start asking. I am not being political but we need our leaders need to be more accountable for their actions.
What happened to Watch the Dog
Ignorance is a disease just as ignorant people are a letdown. (The Brazilian Senate Approves $ 90.7 million Debt Relief to Zambia) does this say to Lungu or whoever? No it is to the Zambians, then why should one ask which people of course it is to the Zambian people or may be Zambian animals, not so @ EX zit.
@ Voice of reason do not be until when Zambia is developed as at now how are we going to develop without money? and where do we find money to develop borrow or sit idol until when?
Do you know how this same debt was used?
Iwe @ Lemba! I am asking a simple question apa saying How was the money used? Iwe you are using emotions to answer! You think the only way you can develop is by borrowing?? Even your Children thats the advice you splash?? Iye Uluse..
@ Lemba you must understand mwana that you are sitting on serious natural resources some of which is rare like Cobalt, abundant water bodies, fertile land… and yet you allow your mind to believe that borrowing a merger $90m is your only way out of poverty. And then you fail to pay back, and borrow again.. Do you get my point mune? Nangu chashupa?
I asked which people because as a Zambian am not aware of this debt and how it was used. Too much debt fattening few pockets while the majority are wallowing in poverty. Today the cancel the debt and you expect me to smile that its a relief? Be serious electricity will soon be increased while fuel high way too expensive and then you yap ati its a relief, to who???
How many billions has Zambia borrowed since independence and how come we are still stuck at the bottom? Clearly most of this money has been stolen or used in completely irrelevant scans like making one season tar roads to cadres homes. You cannot develop a country by borrowing just to run the daily activities of your country like paying civil servants. Show me any massive infrastructure and I will show you how loans have been stolen by the political elites.
Just a couple of years ago you were jubilation your 50 years of independence, more like 50 years of dependency and poverty. So how long do you expect it will take you to develop? Another 25? 50? 75? or maybe 100 years? Do you even have a roadmap or framework for this or do you think simply borrowing is going to do it for you? This explains volumes about the PF’s and more than half the Zambian population’s level of cognition. In this atmosphere I hate to admit that the PF will rule until kingdom come like kambwili prophesied
I also ask which Zambians? How was this credit given to us? Where did we take the said money? If this debt was prudently applied we would have cleared it from the proceeds of that investment, this debt was mismanaged by afew thieves, the debt is unproductive that why we couldn’t pay. I’m not part of such Zambians who borrow knowing very well they will never pay back.
A write off is not a good thing. Instead there should have been an agreement to channel those funds into social recovery programs. In other words, what we are supposed to pay back is supposed to be channeled into the social recovery programs.
Eurobond holders, the Chinese and the IMF should be preparing for a similar serious bald haircut on the money they advanced or are planning to advance to Zambia. Defaults on national debts by Zambia are guaranteed in the 2020s when repayments start.
@Makuli you are right. It is like a car wreck written off because it will be a waste of time panel-beating it back to shape. See for example how the Sesheke to Livingstone road is deliberately never given seriousness and you can see how our debt is used…
When was loan acquired ? How many other loans are zambians not aware of ?
Some people are already blaming this debt on President Lungu. Guys read properly; the amount of $113.4m was as at July 2011. Even Sata was not responsible for this debt. So please think properly and let us inculcate the culture of proper reading before we comment. Thank you Brazil for that gesture.
You borrow money and you dont pay back expecting other governments to write off the debt. Selfish leaders! During HIPC our debt was written off and now you back to square one.
How are you going to pay it back?
Hold on we owe Brazil, a country that impeached their Leader. Furthermore saying its been written off, maybe great for us but what do they get in return. The most valuable assets are our mineral wealth far more valuable than cash. We are apparently in $10BN deficit is this debt part of it/separate? @ Voice of reason has raised valid points. It maybe that the figure above is incorrect judging by the time its taking the IMF to negotiate!!!
The USD10bn are disclosed debts. There are some secret loans, especially from the Chinese ati for “national security”. Then there are debts from payments that were due but were never settled e.g. VAT refunds to the mines, payments to suppliers (road contractors, clinic builders, transporters to ECZ etc), pensions (one teacher I know has not vacated his home 5 years after retiring because he had not been paid his pension). Zambia is broke!
True @Buck Teeth Lungu. I am sure as we speak there are new debts for national guidance and Religious Affairs…
Voice of Reason, my response was for 3 not 3.1. and yes what you should know is that some of these nkongoles goes as far as the Kaunda era of which even Lungu does not know how it was obtained, e.g. the recent euro bond which Sata borrowed do you know when it is due for payment? It is not tomorrow or next year but after so many years that is when they will start paying. By the way who does not borrow do a search you will find that even American borrows even you too one time you borrowed from your friend. What every one of you should know is that some of these nkongoles a country cannot do without. So it is a matter of understanding how life goes in this world we live in.
Sorry Voice of reason I was not emotional was just trying to make others understand as usual. For every one’s…
Stop lying , what nkongoles go back to the kaunda era when mwanawase had all debt wiped out under the debt relief program ?.
Sorry Voice of reason I was not emotional was just trying to make others understand as usual.
If a country like Brazil in serious debt is writting off debt of any other country…then just know you are in really seriously trouble!!
Such debt write-offs don’t come without conditions. It is in exchange for what?A Contract?
So how many other such loans do we have? Could our hardworking MPs demand that a breakdown of the total national debt stock is availed to Zambians? After all, when they go out borrowing, they do so in the name of Zambians
100% agree with you!
Zambians must know what commitments Government has undertaken in their name! This business of hiding the truth away from the people that will ultimately be responsible for repayment of these moneys is fraud and criminality. The only reason for this is that these funds are being abused and stolen – as per the AG report – and the criminals want to hide their thievery away.
Zambians MUST DEMAND transparency and accountability for those responsible for National resources and obligations otherwise we will NEVER move forward as a Nation.
You really need to go to school you Zedian reporters. What is this below?
The Senate of Brazil has approved up to US$ 90.7 million or 80% of the US$ 113.4 million debt which Zambia owed the South American Economic Giant as at 31st July, 2011.
all along the pf has always insisted that zambias debt is sustainable how then are we asking for relief? Two debt relief within 15 years? there is something fundamentaly wrong in the way we manage ourselves.
So they misappropriate funds properly meant for debt servicing!!
Egypt has devalued its currency by 48% in order to meet a key condition set by IMF. I wonder what percent is set for Zambia. I hate IMF not well meaning leader should lie to us that they mean anything well for Zambia. Greece has rejected them. Away with IMF
The other day i was glued to the TV as journalists quizzed the Bank of England Governor about Brexit and the bank’s policies. I thought why cant we also have this? Take politicians and any person in public office to task without intimidation. Politicians here get away with uttering anything to appease the citizens. Mutati should be questioned about this money and where it went.
@Professional well said. In Zambia we create new holidays to pray away our incompetence and extend ineptitude by creating a Ministry of National Guidance and Religious Affairs. It is like the Humanism craze that almost had us eating s–t!! Meantime the emperors are increasingly walking about naked as they grow bolder in their absurdities…
The same pf caders who are crucifying Fred mmembe’s post newspaper and asking him to give to Cesar what belongs to Cesar, today they are celebrating debt write off from Brazil, i thought they will say NO to debt relief and pay to Cesar, by the way it’s only a ka $113m US dollar loan, some individuals are worth more than that amount, how does a country fail to pay up such a small amount. So ka Zambia bakaika mu bad debts account. So sad tulekwatako insoni, tulelipila inkongole.
Africa’s Second Largest Copper Miner in Dire straits.
Brazil can not do that to PF but she trust MMD and seeing Mutati in the for front, PF is disguised by MMD nor wonder PF guys are now baby criers because Edger has inherited MMD legacy that is why now Kambwili and Bwalya Franc are worried on what to do next.