Kalumba backs calls against disclosing the terms for Eurobond refinancing

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First Chairperson for the Zambia Centre for Interparty Dialogue-ZCID Dr Katele Kalumba
First Chairperson for the Zambia Centre for Interparty Dialogue-ZCID Dr Katele Kalumba

Former Finance Minister Katele Kalumba has urged government to heed to the caution against disclosing the terms for refinancing the US$ 750 million Eurobond.

The Economics Association of Zambia (EAZ) has warned that disclosing terms for refinancing Zambia’s first Eurobond will jeopardize its bargaining abilities in refinancing its other two Eurobonds.

And Dr. Kalumba who was Cabinet Minister under the Frederick Chiluba led MMD government says if government discloses the terms for refinancing the first Eurobond it will also expose its hand.

In an interview by telephone Dr. Kalumba states that government cannot therefore disclose such information to the public before negotiating with the lender.

Dr. Kalumba does not think the issue of transparency and accountability should ever arise before government secures any resources through debt contraction.

He says are already systems by which Zambians can know whether or not there is transparency in the use of public funds secured through debt.

Meanwhile economist Noel Nkhoma thinks that it should not be mandatory for government to disclose the terms for refinancing of any bond it issues.

Mr. Nkhoma who is also former EAZ president notes that he has not personally heard anywhere where it has been mandatory for a government to make such disclosures.

He has told QTV News in a separate interview that in his view what the people should only have is sufficient confidence in the government to do what is in the best interest of the Country.

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8 COMMENTS

    • Kalumba should not be entertained he is a fugitive, a witch and a purported headman. He’s no different from Chief Mukuni. These chaps are in existence in the world beyond. Go away Katele you are not with us, You are a demon! Your wife Lumba is ok.

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  1. Responsible borrowing and responsible lending have a better chance of supporting meaningful utilisation of borrowed and lent funds. There is no harm in disclosing the terms of borrowing and lending. Openness can only contribute to securing better terms for all. The people of Zambia, present and future, are the ones who will have to pay back.

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  2. As a former Finance Minister he may have a point but as he might be talking from the belly these days we dont know if this is a genuine statement.

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  3. Madeleine Kalumba has no moral right to comment on this issue. He was Finance Minister when secretive development agreements were signed with mining companies. It was so shameful and painful to see what tax exemptions, indeminities he had secretively signed. Up to now the mining industry has never been the same. And he wants a repeat of that mess again? Let him keep quiet and just focus on his chiefdom. Or has he been dethroned?

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  4. Sounds Like Donchi Kubeba gone wrong against the very Zambians who supported it!
    Chagwa agwesa naku gulisa Ziko!

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  5. It is sad that leaders that are supposed to show transparency are the ones discouraging that. Why should i not know the terms of negotiation? I did not vote for PF to be ruled in secrecy. Transparency was the key word during the campaigns under Sata. This is where my party is going wrong by hiding information from the voters. You sat as cabinet and came up with an SI to tax anyone making calls on internet. This did not go through parliament so that representatives of the people can speak on our behalf.The minister of inf. failed to convince us as to how that was affecting operations of the mobile phone providers. It is shameful and it must be stopped. BE TRANSPARENT unless you are doing something wrong.

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