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Monday, April 6, 2020

EAZ warns against disclosing Eurobond refinancing terms

Economy EAZ warns against disclosing Eurobond refinancing terms

The Economics Association of Zambia (EAZ) is opposed to calls that government should publicise the terms for the refinancing of the US$750 million Eurobond.

EAZ president Lubinda Habaazoka said he does not personally think it will be wise for government to disclose the terms for refinancing of this bond.

Dr. Habaazoka said disclosing the interest rates and tenures of the refinancing will jeopardize Zambia’s ability to bargain in future especially that this is not the first bond that will refinanced.

In an interview with QTV News by telephone Dr. Habaazoka said it will be difficult to negotiate for lower interest rates for the other two bonds if terms for the refinancing of the first bond are publicized.

Dr. Habaazoka, who is also Director for the Graduate School of Business at the University of Zambia however said government’s debt acquirement should not be confidential.

Dr. Habaazoka said there is need to grow the Zambian economy in order to raise government revenue.

He is of the view that this can only be done by government reducing taxes.

Dr. Habaazoka noted that if taxes are reduced, in the short run, government will experience challenges in terms of revenue collection but that people will become economically active.

He said this is what, in the long run, will increase government tax revenue when individual households have enough savings to convert into investments.

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    • This is dumb. Surely he understands no lender will lend us any money without diligently digging into the terms of our prior debt, right? How do these folks get media time? He literally is advocating for minimizing transparency, the very reason we are in so much trouble.

    • The headline is misleading it says EAZ warns against…… and yet in the article he says he doesnt personally think …. please distinguish persignal statements from those issued by associations. You are contradicting yourselves

    • Doesn’t the “Dr.” realize that to get a lower interest rate on refinancing the debt, it would have to be tradable in the credit markets, making it impossible to hide the interest rate it carries? And ratings agencies, international organizations such as the IMF and other stakeholders and potential lenders would need to know the countries financing costs to give appropriate ratings, outlooks, etc?

    • There is only ONE REASON to keep this secret!

      To HIDE the CORRUPTION, INCOMPETENCE and STEALING of Zambian money that belongs to future generations!

      Accountable Government depends on TRANSPARENCY.

      Dizmo is correct. Financial institutions know how to find out all the information. This is just to hide the facts away from the true owners, the ones that will have to repay all this borrowed money, THE ZAMBIAN PEPOLE!

  1. How do you expect the people to pay for what they don’t know.
    Coming from a person who is supposed to protect people’s interest in these matters is shocking and irresponsible.

  2. If the government shouldn’t disclose of terms of public debt, the public should have the option not to pay for this nonsense.

    The government should have collected dividends from the mines, then might be paid interest, instead of having to pay it.

  3. This a blow to the fight for the freedom of information bill. Since its tax payers money, the tax payer needs all the information on deals that GRZ takes.

  4. Haabazoka has been bewitched and sounded desperate for a Govt job from Lungu! But then, this is a guy that a Doctorate degree from Russia with a strange type of Economics practised in a command economy that doesn’t know transparency!
    How do you hide facts from people that will repay the loan? That gives Lungu room to inflate the cost of refinancing and corruption.
    How did EAZ fall into such phoney hands of Haabazoka that only knows so much about Russian Economics and nothing about our Zambia Economy. Where is Prof Saasa, Chibamba Kanyama, etc who speak economic sense!!

    • So the guy has a Doctorate degree from Russia?
      How can a government hide a public debt?….MP’s through parliament have the right to ask for the specifics of a national debt.Parliament has a duty inform the electorate of its dealings.
      This guy is talking crap.No wonder IMF found out that the PF government was hiding our true debt position.

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