Chileshe Kandeta
Chileshe Kandeta
The Ministry of Finance says the country has not defaulted on any foreign debt including Eurobond interest payments and does not intend to do so whatsoever.

Reacting to a report by Eurasia Group, an entity that publishes analyses on politics that Zambia may be facing fiscal challenges and is likely to default starting in 2019, the Ministry of Finance says there is no room for default.

In a statement made available to Q-news, ministry of finance public relations officer Chileshe Kandeta says the Medium-Term Expenditure Framework (MTEF), covering projections on all economic and fiscal numbers over a three-year horizon, also provides a projection of fiscal operations and debt service.

Mr Kandenta states that the issue of debt from China has been grossly misrepresented; stressing that the fact is that Zambia has contracted both concessional and commercial debt from the world’s second biggest economy and has not defaulted on any.

He further states that the implementation of an Asset Liability Management Strategy on Zambia’s Eurobonds and for the loans from China is a prudent option that is open to the country and would be undertaken as when the need and opportunity arises.

On Eurasia Group associating the IMF programme with electoral pressures, Mr Kandeta says the ministry is not aware of the pressures that are being referred to and that neither has any cooperating partner or investor communicated such to them.

He says government expenditure is focused on normal developmental programs contained in the Seventh National Development Plan that has all the details on the projects being undertaken.

Regarding the engagement of the International Monetary Fund,Mr Kandeta says government has never back peddled, stating that the Minister of Finance has reiterated her commitment to the programme and to creation of a platform under which the engagement with the IMF will be advanced.

He says it is in this regard that a full Debt Sustainability Analysis (DSA) whose results are now being finalized was undertaken.

Mr Kandeta says Cabinet will be briefed on the outcomes of the exercise and on the executive decisions that are required to be undertaken to successfully finalise the engagement with the Fund.

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18 COMMENTS

  1. Chileshe Kandeta has been in this position since the Federal Welensky Government days. True definition of a personal to holder position.

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  2. What is this blubber waffling about? IMF says Zambia is likely to default on its future loan and Euro bond repayments. No one is saying Zambia has now defaulted on any of these huge loans taken.
    Talk about IMF, Kandeta and minister of finance have nothing to offer to Zambians on the progress of Zambia clinching successful negotiations with the Institution (IMF) because hard facts are stack against Zambia’s capacity of being unable to meet repayments obligations when due in the near future dates.

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  3. Was Chileshe Kandeta – Public Relations Officer in the Ministry of Finance misquoted, or did he actually say “the ministry is NOT AWARE of the pressures that are being referred to and that neither has any cooperating partner or investor communicated such to them”? Not aware?.

    Ty McCormick – Africa analyst at Eurasia Group clearly explained that: “ the Zambian government remains highly vulnerable to external shocks such as
    (1.) a SLUMP IN COMMODITY PRICES or
    (2.) a DROUGHT THAT DENTS HYDROPOWER PRODUCTION
    …… and in turn hurts the mining sector”

    What is so difficult to understand from above explanation, and fail to be aware? How can you fail to be aware of these two basic threats? What sort of PR is this that is so dumb and insulting to people’s intellect?

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  4. He was very careful with a choice of words he was giving an outlook of what could be and he in no way did say Zambia would default he just like aba red should know the future is not certain what is certain is what is done now and in the past giving the position of what the future will outlook he knows and understands the potential the Zambian economy has given the bailout by the IMF
    The media brief from aba red is a fair presentation of what the ministry is seen to be addressing to unwind and manage the opportunities presented in the economy of Zambia there is nothing wrong from aba red to speak affirmatively because he is speaking from an insider…

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  5. AND MUST BE LISTENED TO MORE BY YOU INCLUDING THE EURASIA ANALYST AND REAPPRAISE BASED ON YOUR TABLE may be the assurance of performance affirmatively may not be because the future is uncertain but his position brief is good and positive for long term On the contrary also Eurasia is positive and upbeat about Zambia’s fortunes

    Aba Yellow Dynamo ababako ///

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  6. HE HAS FAIRLY COMMENTED AND RESPONDED “ONLY THE WHATSOEVER ASSURANCE MIGHT HAVE BEEN WORDED DIFFERENTLY IF NOT IN HIS STATEMENT”

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  7. When market sentiment is not in your favour, you do not delegate to a spokesperson. The minister herself should have issued the statement. That is how you calm nerves.

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  8. The Chinese debt is what will holder Zambia in reverse gear.

    The Ministry will do well to be transparent on the true extent of these Chinese contracts.

    In the meantime, ECL and team will have to rely on their spin doctors until the light appears.

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  9. The point is who was speaking to Was it a paid research or commentary or it was a market call by a group of Investors trying to see what really the Outlook is Your response should be straight sound and assuring to allay those fears You have a firm back ground ,position and IMF is in view
    Abebako Kuli Largade Sometimes Soundness, Reputation and Track record counts more than what the facts are really are So what should count is the work process and confirmation from ministry If fact he was favourable to Zambia

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  10. Our desperation for more debt is shining through. We are too hungry. We need more money. And that is the problem.

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