Government has set aside 10 million dollars in the sinking fund toward offsetting the 750-million dollars Euro bond scheduled for 2022.
Finance Minister, Margaret Mwanakatwe says government has enough time to raise the 750 million dollars hence the decision start to raising the funds early.
Addressing the media in Lusaka, Mrs. Mwanakatwe noted that the sinking fund will be used to settle the other two Euro bonds.
She had however noted that the depreciation of the Kwacha will increase debt servicing because government has to buy dollars to pay its debt obligations.
The Minister added that she will soon be travelling to China to engage the government on debt restructuring.
And Mrs. Mwanakatwe has revealed that Gross Domestic Product-GDP- growth estimates for second quarter of 2018 increased from 3.9 percent compared to 2.7 percent in the first quarter of 2018.
She says the iincrease was supported by positive performance in mining, manufacturing, construction and stable supply of electricity.
She says expenditure in the third quarter in line with fiscal consolidation was below the target of 9.4 percent.
The Minister has also projected a 7 percent fiscal deficit at the end of the year lower than the projected 7.4 percent.
She revealed that government paid out 5.1 billion Kwacha towards debt servicing adding that domestic arrears as at end of second quarter stood at 14.7 billion Kwacha compared to 13.9 billion Kwacha recorded at the end of first quarter of 2018.
Mrs. Mwanakatwe has since projected stable macroeconomic fundamentals, single digit inflation rate, growth of 4 percent and continued implementation of austerity measures at the end of the 2018.
And JICA Resident Representative who spoke on behalf of corporation partners Hanai Junichi commended government for stable macroeconomic fundamentals.
Please put that in Layman terms so people will understand why Miles Sampa who messed up the Euro Bond is now Lusaka Mayor.
Is ZAFFICO sold for just $10 million?
How many ZAFFICOs could you establish from $750 million squandered Euro Bond? Only us who understands money can answer it.
We are in trouble!!!!!
(I can’t picture the late Dennis Liwewe screaming that on the radio just before Morocco scored in a World Cup qualifier).
Let’s do it! It can’t win.
What will $10M do when we are talking billion dollar debt?
Only 10 million dollars set aside for for the repayment of two Eurobonds worth 1.75 billion dollars?
That’s chambian economics for you.
She has to shout some PF numbers, whatver number with ka % in saprano. Zambians don’t understand a shhit. How much did that toll booth cost?
The money has been set aside for more money in their pockets………….lol
Why do ou have a chinese giving praise whenever the govt of zambia reports to its citizens on its performance, its really dogdy ….
If I am not mistaken, JICA is a Japanese entity. So contecting it to the Chinese is out of context. Nonetheless those economic numbers are worrying. Nothing to be excited about. Look at that domestic arrears number increasing.
O you can make 2 more toll gates in that money, useless greedy, visionless loser’s
Really laughable…when Lazy is spending $400m of custom made aircraft….jokers indeed.
Imagine that.
Zambians are too docile!
As long as they have had 3?square meals, it’s all gravy.
Pathetic!
10 million is not even 10% of the Eurobond loans…where is the sink fund Fossil Chikwanda left?
Well to be perfectly honest, in my humble opinion, of course without offending anyone who thinks differently from my point of view, but also by looking into this matter in a different perspective and without being condemning of one’s views and by trying to make it objectified as possible, and by considering each and everyone’s valid opinion I honestly believe that my opinion is you have made me completely forget what I wanted to say, in the first place on this matter…..
I am also of the same view kkkkkkkk
Sinking fund in a sinking boat
sinking fund in sinking shiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiti hole just like what Trump had said………………..lol
Do you notice how PF cadres don’t comment when the article is about debt. they only comment if it is about HH the !doits cant even understand what trouble the country is in. We are really in trouble, ATI travelling to China to restructure debt, you morons shouldn’t have over borrowed in the first place, non of you can count in PF including the convict him self. I wonder what she is going to offer the Chinese this time?
It’s not even 10% of the amount owing, Margaret why?
November 9, 2018 at 9:11 am
But sadly most Zambians Don t realise the actual effects of corruption if we want true development we need to weed out corruption first it’s extremely difficult to develop when you have too much corruption let’s take China for instance public theft is punishable by hunging inclusive of government officials therefore there is little corruption and with sound developmental policies hence you start to see true development
We are taught to believe corruption is not all that bad as long as the government builds a road but we will never develop like this it’s like taking a step forward and two steps backward currently the PF cut most subsides but where is this money going if we keep on borrowing so heavily, we now have new taxes including toll gates which raise a lot of money but where is this money going if continue borrowing so heavily
This country is seriously in trouble from different angles. Apart from economic troughs, having HH in political arena is another hell. So whichever way you look at it, the devil we know is better.
No thanks, you keep your devils. We want normal people to lead us.
Lets Roll