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Government has paid 2% of external debt so far – Mwanakatwe

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Minister of Finance Margaret Mwanakatwe
Minister of Finance Margaret Mwanakatwe

Minister of Finance Margaret Mwanakatwe has revealed that the stock of external debt of the country at the end of the first quarter was US$9.37 billion.

Mrs. Mwanakatwe said the slight increase in the debt stock was on account of disbursements during the review period.

Speaking during a press briefing in Lusaka today, Mrs. Mwanakatwe stated that as at June 2018, government paid US$161.3 million in external debt service.

She said total guaranteed debt was US$2.7 billion of which US$1.21 billion had been drawn against the principal amount.

ZANIS reports that Mrs. Mwanakatwe noted that the stock domestic debt as at end of June 2018 was at K51.86 billion.

She explained that with regards to domestic arrears in the first quarter of 2018, increased to K13.91 billion from K12.77 billion due to a rise in arrears related to roads and other RDCs.

Mrs. Mwanakatwe said the pace of arrears accumulation is a source of concern to the government and commitment controls are being strengthened to avoid accumulation in RDCs.

She added that the road sector arrears are on account of more work being done as a result of payments made.

Mrs. Mwanakatwe noted that the concentration of dismantling projects at 80 percent and above will address the problem going forward.

Mrs. Mwanakatwe said government is committed to implementing the recent austerity measures to support inclusive growth and fiscal consolidation.

The Minister explained that following the announcement by President Edgar Lungu on a number of measures to address the fiscal imbalances and high debt the country is facing, government is now in the process of implementing the measures in order to have a new fiscal and debt outlook into the medium term.

She disclosed that the measures announced are supposed to support growth and social protection going forward hence, on-going projects whose financing has been signed for will continue to be implemented.

Mrs. Mwanakatwe said government will be selective on the cancellation of current contracted debt which have not yet disbursed to address economic impact, financial and legal implications.

She added that her ministry will be aiming to free up cash flows by carrying out liability management on selected bilateral loans, both local and foreign by extending the maturity profile.

Mrs. Mwanakatwe stated that the austerity measures are in no way indicating an intention by government to default on any of its loans.

She said the major objective is to reduce the pace of debt accumulation and to smoothen the maturity profile so that government has more fiscal space especially around the time of maturity of the Eurobonds.

Mrs. Mwanakatwe added that, it is also important for the country to return to moderate risk debt distress and support fiscal consolidation.

41 COMMENTS

    • @Ndobo, please boyi, us who get drunk are not mad.
      The 2% is ukutumpa fye as others stated. Or insulting and ukutumfya Zambians as usual. These PF are worse pandemic than anything you can think of.

    • Once upon a time, I worked at Animo Farm. I used to clean toilets and dispose of cow dung for manure at HH’s farm. When I left, I saw an increase of Mad Cow Disease in both the Farm owner and all his visitors to the farm. I wish I never left.

    • “Mwanakatwe has revealed that the stock of external debt of the country at the end of the first quarter was US$9.37 billion….the slight INCREASE in the debt stock was on account of DISBURSEMENTS during the REVIEW period.Mrs. Mwanakatwe stated that as at June 2018, government paid US$161.3 million in external debt service.”

      I have summarized it for some of you to digest this nonsense this drunkard Maggie is uttering…

  1. This is not exceptional reporting. Tell us when you have paid half of the debt. Nobody is interested in your routine work. Over zealous, s-t-u-p-i-d woman.

    • Really laughable …Its like you own a bar/bottle store and your cashier comes to you at the end of the week and starts talking to you about only the sales he had on Friday night …in short what she is talking about is pointless, Zambian economy is not a commercial bank…even the numbers of the debt do not add up. Mind you she just created a supplementary budget part financed by donors remember that one on top of another budget….she is running circles round you and you think she is smart savvy woman…really laughable …don’t follow the likes JUNIOR who is probably a relation to her hence supports her.

    • Why? Its your children who will pay heavily for the drunk’s recklessness …already schools have not recieved funding from January.

  2. Rhetoric after rhetoric, when are we going to see implementation come to fruition kanshi? Its sickening to listen to this drunkard or is it sot? Since the beginning of the year we have been listening to the same song over and over. Just accept that the coffers are dry because you dullards have stolen all the loot and now even China can not help you. What about the reserves how much is remaining there? The objective is to reduce the pace of borrowing? I have never heard of such an analogy. JUST STOP CONTRACTING DEBT FOR NOW PERIOD.

  3. Govt may try to normalize things but with the current system of doing business, it will be very difficult. Here is where I think the real problem is; the country has received a lot of Chinese investment but this has failed to translate into meaningful economic growth because Chinese are not using the money generated from here to support local businesses. These guys are circulating money within themselves and later sending it back to China. There is more to these guys than meets the eye

  4. When people dont trust you, even when you give low figures, they will think the truth should be lower figures. As for me, I think it should have been 0.0002%

  5. What exactly is the time frame for repay? If this 2% stands for quaterly payments each year, then it may not be bad at all. Given a period of 10 years for instance, that would then be 2% every 3 months and that by 10 equals 60 % after a decade.

    I was’nt exceptionally good at Maths but it sounds rational to me. Even after 10 years, European countries like Greece and Italy are still struggling to implement austerity mesures imposed on them by the EU.

    • “I wasn’t exceptionally good at Maths but it sounds rational to me.”

      With such statements you make ….when I tell you that you are a gullible docile woman you take offense …remember that story I told you about our neighbour who was always battered by her drunk hubby when he returns home at night and when we tell her that we will call the police she states that he beats her because he loves her very much? That always comes to mind when I read you posts!!

    • @ Nine Chale

      Do you “knowledgeable” moron know difference between “servicing” and “repaying”?

  6. Ever since I stopped cleaning toilets at Animo Farm in Namwala, there has been a lot of dung accumulating on the farm and MAD COW DISEASE has broken out!

  7. WOW, if the figures are right, it will take 58 years to repay declared 9 billions.
    What about Chinese secret loans? Another 100 years?
    How many generations of Zambians are going to pay for PF “unprecedented development” (LoL)???

  8. Don’t worry, there will be another debt cancellation after 13 years (2031) and your Hakainde will start on a new leaf if Lungu does not kill him, considering his wild claims. By then Zambia will be the continent’s model of prosperity and Hakainde (if he is not replaced) and UPND will bask in the glory of PF’s achievements. For now let PF raise you up like the U5 baby you are. Just like we encourage a baby to walk, for you now it’s ENDA..ENDA…DA..DA. When you start walking in 2031, PF will give you the mantle. For now PF is solidly in control. Stope being ungrateful and bitter.

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