Addressing a Private Sector and GRZ Consultative Seminar on the Economic Stabilisation and Growth Program in Lusaka today, Mr. Mutati said the Private sector would also borrow at zero percent so that they contribute to the Zambia Plus program.
Mr Mutati said that the International Monetary Fund-IMF is offering Zambia finance at zero interest rates hence banks need to be competitive and beat the IMF offer.
Meanwhile Mr. Mutati has said that government will continue dealing with debts and increase revenue with or without the IMF coming on board. The Minister has however advised Zambians not to be scared of the IMF because key reforms such as the removal of subsidies and introduction of cost reflective tariffs for fuel have been made.
Mr Mutati noted that Zambia’s economy is already showing signs of recovery owing to measures implemented so far.
And Ministry of Finance Permanent Secretary Mukuli Chikuba says Zambia’s economy last year started picking after two years of tough times.
Meanwhile, Zambia Revenue Authority -ZRA- Commissioner General Kingsley Chanda says the authority has extended the deadline for complying with the new law for all account holders to have TPINs from 31st March to December 31st.
Mr. Chanda says the decision was arrived at by a technical committee formed with the Bank of Zambia which decided to give banks ample time to change machines and upgrade their date.
Yaba!! Yes Mr. Mutati, some Governments somewhere do not default, BUT GRZ defaults big time. The fact that you are asking Banks to lend you at below zero rate shoots down your claim that GRZ does not default.
Is the guy normal? Tell me his he the Mr of Finance??????
His he the minister of finance ??????
Argentina
Russia
Greece
……..
……..
Have defaulted before with economies of more than $200bn.
Mutati have you ever heard of things called “sovereign default swaps”?????
By that Mutati means personal loans for those of you who don’t understand Govt. Jargon
Really laughable ..when you find the dream job is bigger than you expected and you are surrounded by utter empty tins and a lazy boss/tourist …you start hallucinating
It’s possible yet cumbersome to implement especially for an economy as small as Zambia’s., In the arab countries there is what ii called Islamic Banking as an example 0% interest rate, the advert of christianity in rome they had a similar system inspired by catholic teachings.
Recall the only two presidents of USA who dared to change the status quo, the federal banking system were in turn assassinated, John F. Kennedy and Abraham Lincoln.
It is possible but not an efficient way to operate the economic/financial system.
“Mutati challenges banks to lend to Government at zero interest rates”…..
Why should they? How are they going to make money to pay their employees? Or does Mutati think Zambians are slaves that can work for nothing??
And Governments DO default! Has he never heard about the Argentina default?
Sorry to say, I thought this man had some brains. He has just proved he has zero. Must be an incurable PF disease that has infected him
This is typical of PF, wanting to steal all the time. Mutati wants an interest-free loan like Chikwanda did from the mines from whom he withheld $600m of VAT refunds for 6 years. PF should not bleed the economy dry. Zambians are now on their knees. People cannot even pay school fees. Govt is now a blood sucking monster that just keeps on taking away from citizens without giving anything back.
This is mere rhetoric. If the man was serious, he could have gone to sit with the banks. He is just shouting in the air. The rhetoric republic, I am not partisan but please stop rhetoric.
Ba Mutati,I think you were just JOKING, you know that BANKS are there to MAKE PROFITS, do you believe they can be so GULLIBLE TO LEND YOU AT ZERO INTEREST? GOVT CANNOT DEFAULT, ARE YOU SURE?? HOW MANY CONTRACTORS AND SUPPLIERS OF GOODS AND SERVICES HAVEN”T YOU PAID FOR AGES?? BE NOBLE and GENUINE, PERSUADE THE BANKS OR FORCE THEM TO REDUCE LENDING RATES SO THAT PEOPLE CAN BORROW AND INVEST! The reason WE PRAISE FOREIGN INVESTORS IS BECAUSE THEY COME WITH CHEAP CAPITAL and on top of that you give the tax free incentives- who can fail to out compete a Zambian with such an arrangement. To grow and own our economy we need to promote local investor by giving them access to low interest loans for investment!
Mutati needs cannabis for medicinal purposes
I totally agree with you! He has surely lost it.
Imagine lending at less 0% interest means the banks start paying interest to Govt for the loan made to Govt – totally crazy. My father tells me that even at Univeristy, Mutati was never serious – always playful. Just when I had started thinking that he is the only serious cabinet minister, he started playing with our country’s economy just like the drunkard Lungu…where to Zambia.
Mutati went to UNZA failed first year then worked for ZCCM and was sent to UK where it took him year to finish. ACCA is not an academic qualification its a professional qualification.
A minister who does understand the value of money. Why do banks charge interest its because of opportunity cost. The cash you have today is not the same as having it next year. How then can a bank lend without interest. This man is indeed empty.
Awe ba Engineer please have your facts right. Honourable Mutati did not fail his first year. He did his first year at UNZA Lusaka Campus and thereafter was selected among those that went into second year at Ndola Campus (Copperbelt University)
If the man was serious, he could have gone to sit and discuss with the banks. But because rhetoric is their way of living, he is just shouting in the air. Neither the ruling nor the opposition will turn the fortunes of this country. it will be mere rhetoric like this, inshiku shi leya
My opinion is that the government always has the upper hand in such deals since they borrow (or so claim) to improve the lives of the citizens.
So whether there is a risk to default or not, Banks have an obligation to lend to government because it makes them feel they’re truly investing in the progress of the country. As long as it works, this is good for both sides but it is wasteful spending and inappropriate investment that damage the relationship and indefinitely cripple the Banks. Like Donald Trump said: “If you owe the bank $100,000 the bank owns you; if you owe the bank $100,000,000 you own the bank.”
@ Nine Chale
Trump quoted late Tiny Roland (CEO of Lonhro). Actual quote (in 1972) was “if you own the bank 10,000 Pounds, you are in a 5hit. If you own the bank 1,000,000 Pounds, bank is in a 5hit”
kkiki as the useless pf government has been defaulting on kaloba now they think that anyone can trust them with money. You have a poor credit rating as was reported recently and you think any sane bank can even lend you money at zero interest. I think everyone is now starting to believe the articles about this mutati empty tin where they said he failed 3 times in the UK and was passed on mere discretion. PF have really taken this country to the gutter. Meanwhile the drunk president is busy flying around showing his ugly teeth to the world and embarrasing us. Zambia voted for HH- a poweful economic manager and yet the pf could not bring themselves to believe that zambians had rejected them. Zambians wake up and get rid of these chimbwis
If the IMF is doing so, why have they not released the funds to you already? Like a few have said governments do default, coupled with the lack of fiscal discipline banks would never do such a thing. Besides liquidity in the market is tight now so whose lending you any money at a cheaper rate?
Is this minister normal? This must be the dullest finance minister in the world.
With a double digit inflation, if I lend u K10 today, it’s value will be less tomorrow, eaten by high inflation. Hence need the factor in inflation besides profit.
Mr minister are you serious? You are an embarrassment to say a stupid thing like this. Banks make money by lending to government. If they don’t make money from government where will they do it? Charge higher interest rates for lending money. Interest rates are already too high that is why companies are not expanding because they can’t afford to borrow to expand their businesses.
Please explain your seemingly uneducated proposal
These ministers project themselves as intelligent but they don’t deep dive on to a thought before they say it. They just say it, I am PF but I should confess that this country is in a deeper quagmire than we all think
Tell me he was just joking. Can someone prescribe marijuana to him. It might help him.
Yes, Peter Sinkamba has already prescribed a dosage of 6 pulls 3 times a day laced with 6%coke for the minister!!
With Mutati at Finance, we are going nowhere – please bring back Kaloba Chikwanda.
Mr minister you have lost it. What business lends at a lost, less than zero %. And u are talking about growing the economy or you aim at shrinking it altogether.
Unbelievable…..especially that it’s coming from an accountant and minister of finance
I challenge the Govt to reduce PAYE to 0%.
Ba Engineer epo mwaba? You are the original UPNDonkey.
PF mule has spoken
The Chickens have come home to roost! PF government has bankrupted the country. No lender wants to deal with these criminals. Eat your tribe!
UPNDonkeys you mean you are so donkist that you can’t enjoy a light moment?
Kiki ati light moment… banoko. Don’t think we are born today . silly ape
And PFools,,, just finding out
Hahahah….No way ati light moment with Terrible nio…Namazai or Toilet cleaner!! That is taboo and unheard of. Have you just had 6 roast rats for lunch?
Who lends at zero rate when they’re in business to turn a profit? Its no wonder Zambia was a poor 3rd world nation in 1964 and in 2017 we’re still a poor 3rd world nation due disastrous misleaders like Mutati.
Look at Singapore and UAE today vs decades ago and feel ashamed Mutati.
True, but even closer to Zambia is Rwanda. Look at Rwanda in 1994 and today. Look at zambia in 1994 and today!!!!
Retirees have not yet been paid and you are wasting money trips and BIG cars for MPs and ministers. What a government. Look at your priorities please. People are suffering while you hold their money for years.
This Minister without Finance is a Joke! Failing to pay Road Contractors , ECZ Creditors, Retirees and monthly wages for Civil Servants and Public Workers is Defaulting. This MMD Minister of Finance serving the PF Govt has no idea of Running a Ministry of Finance in a modern functioning economy. The man is as visionless as his Boss, Edward Chakolwa Lungu. Total waste of time.
Its comedy ..the sad part is this guy during MMD era was not good enough to even enter Minister of Finance premises as they were brains more qualified for the job..today he is minister of Finance and he is the only shining among empty tins!!
Is the “Hon” Minister drunk or on drugs?
I think after KAPYONGOs announcement about marijuana,some ministers tested for medicinal purposes.MUTATI was one of them
True – actually for Mutations, its both Drugs and Alcohol….remember he always talks more than he can deliver! He is not even ashamed of himself for saying that sh.it!!
Unbelievable! Mutati, Mutati, this proposal is just incredible. How could banks lend at 0% interest rates when the government’s official cash rate set up by its own bank of Zambia is not even near 0%? Does this really make any sense? Even in bigger, foreign economies where the official cash interest rate is almost zero, banks would never match or beat that.
I think he read an article here few days ago talking about how high interest rates charged by Zambian banks and instead of following with a sensible and articulate response to it to support the consumer, the dumb minister waffles about it.
Is protected by the Constitution no comment.
How do the banks then make their money. Let the banks liquidate PF just like PF is liquidating The Post
It looks that prayers in the Holly Land, notwithstanding hypocritical performance of half GRZ Cabinet, did not produce expected miracle?
What next? Plan “X”. Plan “Y” or Plan “Z”?
Mr Minister, what about compensation for inflation? Time value of money? Other risks?
Do you even have education in finance?
Bradden up yet thinking horrison. Time value for money and opportunity cost are factors that the western way of teaching book economics. But the world and reality is more complex than that.
In the arab countries there is what is called Islamic Banking at 0% interest rate likewise, the advert of christianity in Rome they had a similar system inspired by catholic teachings. In zambia just look at the mismatch involving borrowing rates, lending rates, inflation rate, Boz Monetary Policy rate, etc it does not add up, no equilibrium.
lets challenge the status quo, for the benefit all. not just the commercial banks.
Mutati are you listening to yourself? Banks are not only financial institutions but also business houses and as you know the bottomline of every business is profit. Zero interest rate??It is unbelievable that this is coming from a Minster of Finance who is also an accountant by profession. What Mutati should be kindly asking for are favourable interest rates!!My foot!
@Nubian (sudanese) princess …read first sentence then talk jargon
This guy is really an empty head. What is innovative about lending money at zero interest rate? Has Mutati gone mad or what? Right when this guy was appointed Minister of finance, I told my friends that we shouldn’t expect anything good from Mutati. Firstly, Mutati is not an economist. He’s an accountant. That position requires someone who’s very sharp with an ability to see the bigger picture. Secondly Mutati had never turned anything around as a government employee except giving nicely drafted speeches at events which some people were mistaking for performance. This man is just an orator, nothing more. But ECL as usual cannot make any meaningful decision in his life. What are we going to remember this guy for kanshi?
ACCOUNT HOLDERS BEWARE. MUTATI IS TELLING US THAT THE GOVERNMENT WILL TAKE OUR MONEY AND WE WILL BE THE LOSERS, IT S HAPPENED IN ZIMBABWE AND IT IS COMING TO US HERE IN ZAMBIA. DIG HOLES HIDE YOUR MONEY AT HOME AS THE DAY IS COMING WHEN WE WILL GO TO THE BANK FOR MONEY AND BE TOLD THE BANK HAS NO MONEY. THE P F GOVERNMENT IS STRANDED NOW.
Ba Minister ati government does not default!Where on earth do you borrow for free whether Govt or not.such utterances should not even be entertained.
So the banks are asked to do charity work. So where do they get the profits? That concept needs alot of qualitative research not only mouth talk.
I would not be surprised to hear that mutali is in chainama hosiptal. No wonder why Mpelembe Drilling in Luanshya collapsed. Mutati was one of the Major shareholder and Director. What do you expect from such dununa reverse leaders.
EVEN CHAINAMA CAN REJECT HIM. I THINK THIS GUY IS TOO SICK.
Mmmmm Ba Feligo, how will I then get my salary baka’amba…mulebikako amenshi kufyamba mule dobola mudala!
Banana Republic.
Either the person who appointed Mutati is s.t u.pid or the guy himself is very very st.u.p.i.d
Iwe Felix mune! This is not UNZANDO, ulebika amano yobe on the job at hand. Not ukulalanda fyabupuba!
Moneni abaiche nabayamba ukukutuka – stop playing with people’s lives after all nobody elected you – you are just Chagwa’s appointee!
Zambian learned people – that is just a light moment. But LT reporters everything is reported as gospel truth!