United Party for National Development (UPND) leader Hakainde Hichilema has said that the action taken by the African Development Bank (AfDB) to cut any financial disbursements to Zambia for failing to repay contracted loans on time means that the country has defaulted.
Posting on his social media account, the UPND leader said that Zambia had now joined the AfDB blacklist of Zimbabwe, Somalia, and Sudan, which he labeled as fragile states.
UPND Leader revealed that the African Development Bank 1.4 million dollars loan is not the only default as the PF Government has defaulted on some loans in recent months.
Mr Hichilema says a few weeks ago, Zambia defaulted on 6.2 million Euro to an Italian Bank that purchased the Presidential jet.
He said this was despite Finance Minister Bwalya Ng’andu giving assurance in August that Zambia will not default on debt servicing.
“This default will be blamed on UPND and HH, the latter having connived with AfDB”, he said.
Mr Hichilema has however advised the PF that in order not to default on loans, It can slow down on borrowing by reducing deficit for 2020 from 5.5% to 3.4% of GDP.
He said the PF must further consider slowing down on spending, by cutting back on unnecessary or low priority capital projects such new roads, new districts, ministries, commissions and new universities.
He added that PF must improve the quality of public spending, focusing on sponsoring commercially viable public-private partnership projects that will help improve productivity and bring more money into the Treasury through tax contributions.
“A few weeks ago, I shared this graphic on how Zambia is now stressed to service debt, which I share again today. The Eurobonds are due in January (US$112.1m); March (US$40.3m) and April (US$85m). If Ng’andu does not take the measures above, Civil servants must forget about their salaries”, he said.
He regretted that after months of denial about the gravity of Zambia’s debt situation, the PF Government’s self-inflicted fiscal decay has fully manifested, as Zambia fails to pay US$1.4 million interest to the African Development Bank (AfDB).
Mr Hichilema said it is sad that AfDB has thus cut any financial disbursements to Zambia for failing to repay contracted loans on time. Zambia joins the AfDB blacklist of Zimbabwe, Somalia and Sudan (all fragile States).
This is our biggest problem and it will haunt us for years to come: debt. Like it or not, we are in trouble.
“A few weeks ago, I shared this graphic on how Zambia is now stressed to service debt, which I share again today. The Eurobonds are due in January (US$112.1m); March (US$40.3m) and April (US$85m). If Ng’andu does not take the measures above, Civil servants must forget about their salaries”, he said.
Elo ninvele chi muntu ati he doesn’t offer solutions, mwanvela tell your bosses not to default palasiti naimwe simuzafola monga Ba council and zampost workers, TO BE WARNED IS TO BE FOREARMED.
HH warned you long time ago and you called him bitter. Tiye tiye na dununa regret
No wonder the kwacha is doing fine! Kansi we are busy defaulting on loans
Kwena sure.
The PF can pay 27 million US Dollars of electricity that never gets delivered, yet, they default on a loan with only 1.4 million US Dollars?
Where did we find these people ruling us?
Even my left it0le can run this country better.
And things will get a lot worse. God help us.
Hogwash!
You being the “Hog”
PF for you just take it kaili nibasata batushile.
Bazambian chishi mulefwaya?namushiba babene!lunguye lungu
Please let’s all enjoy Christmas, let’s forget politics of complaints today and celebrate the Birth of our Lord and Savior Jesus Christ. Merry Christmas everybody.
Hallelujah
You mean let us all bury our heads in the sand ?
Fikaisova kuntanshi ?
In darkness and no food?
The nigga spends sleepless nights.
Restless moments.
S3xless bedding.
Appetiteless dinning.
Reliefless toilet sessions.
Non-Nightmare-less dreams.
Light-moment-less occasions.
Thirsty-quenchless water drinking episodes.
Chemistless relations.
Indeed spare us this Christmas for our T-boneful encounters.
All work and no play makes h² a dull boy-ish U5 goon.
@3.4 You are truly a scoundrel
Ndeloleshafye…………..
Comment: swebo nkumbele banene
Indeed Hichilema it means grz has defaulted
This is a total lie from a supposedly good person like Hichilema. People please visit AfDB website and see latest approvals for Sudan. the latest approval for Sudan was 23rd December 2019. HH please don’t mislead the ignorant masses in Zambia. Afdb is always on its knees begging Zambia to get more loans and the Government is spot on refusing most of them. HH wala.
Kikikikiki HH ……
take it easy.
It’s only $14 million which you know very well that government will soon pay.sometimes it’s better to be even a councilor to understand governance issues not getting government policy in airwaves like bwana HH.sure HH is rejoicing over tin AfDB proposal of payment of $14 million and comments on fb?
Misplaced faith in h²’s political utopia is extremely dangerous.
So what if we default? We have just negotiated for extension of repayment period.
@at thorn in the flesh u may e among the few that have benefitted from the callous economic conduct of the current system.
Nit be assured not even u t avlento buy food for your relatives as high as they are.
Like it or not u have buried your head in the sand because of shame
It is very disturbing to be associated with failure, isn’t it
Anything else but this mposter and inexperienced h².
Thanks.
Anything else but this imposter and inexperienced h².
Thanks.
There’s no smoke without fire and indeed AfDB has seen the Zambian fiscal fire.No wonder Lungu had asked Turkey for help with its debt.
We have become so good at insisting we didn’t make a massive mistake electing President Lungu, that we have somehow convinced ourselves that maths doesn’t work in Africa the way it does everywhere else in the world. AfDB has imposed sanctions on us for failure to repay debt, Fitch has Zambia rated all the way down at CCC, 60c of every US dollar borrowed under the name of Zambia disappear into deep pockets before they can be spent on the actual tax paying citizens, but somehow he’s doing a good job. We cannot make enough power to supply the small demands we have, purely due to years of pig-headed arrogance. Somehow we convince ourselves he hasn’t driven the country off a financial cliff. Keep believing. If this reality doesn’t convince us, nothing will.
@Thorn in the a.ss is really an a.ss. Can’t articulate – merely opposes because it’s HH. Grow up and debate sensibly or objectively sometimes. When we criticize ECL or this regime, at least it’s based on evidence.
This IS a default and not the only one. For example, if you care to know, in the last few years ZESCO has defaulted on 7 loans. There is more to what emerges and this government’s reaction is damage limitation rhetoric when the cat is let out of the bag.
Chicken droppings! Hogwash!
Get out’a here
Kikikikikiki!
What rubbish!
Britain and Europe should consider returning gems and precious metals(gold silver etcetera)Taken from black nations during the colonial era.Much of which are in museums jewelry and coronation regalia.Peter Carlos Hinds.
Just too many Boneheads, like this Thorn in the A.ss blogging here, with no common sense at all. Too bad, that’s why we’re in so much financial trouble. Sorry Harold Muna, but he’s not going to change, simply because of too much bone and very little grey matter!!!
Kikikikikikijukijajajajajaji
No message.
Pure hogwash.
How dare you insult Authority? 1D1OTS!