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Alba Iulia
Thursday, July 2, 2020

No Zambian Financial Advisory Firm or Political Party Has A Track Record to Execute The Debt Restructuring Zambia Needs

Headlines No Zambian Financial Advisory Firm or Political Party Has A Track...

Economic Statistician Shebo Nalishebo says there is no Zambian financial advisory firm or political party with a track record to be able to pull off the kind of debt restructuring that Government needs.

And Mr. Nalishebo says Zambia needs an experienced negotiator such as Lazard Freres of France, one of the financial companies in the business to help in restructuring its debt servicing.

Mr. Nalishebo says the type of restructuring required, is debt rescheduling or refinancing which involves a change in an existing debt contract and replacement by a new debt contract.

He told ZNBC news in a statement that Lazard Freres of France helped to convince 86 percent of bondholders of Ivory Coast debt to agree to amended payment terms in 2012.

Mr. Nalishebo said Mozambique’s national oil company also sought the services of Lazard Freres to help raise as much as two billion United States dollars to refinance gas development projects in 2018.

He said countries need a financial advisor with clout and experience in dealing with other financial institutions who may be the holders of their economies for bondholders to agree to new terms.

On Wednesday, Secretary to the Treasury Fredson Yamba said Government intends to use the services of the financial advisors in line with signed agreements with lenders; multilateral, bilateral and private.

He restated that Government has no intention of unilaterally restructuring debt without consulting creditors.

Mr. Yamba said the decision to engage fresh advisors followed the expiry, in 2019, of the mandate given to previous advisors.

He said a thorough evaluation process of the tenders from the organisations was undertaken to select financial advisors for liability management of Zambia’s debt portfolio.

The evaluation was completed according to the Public Procurement Act Number 12 of 2008 and a notice of intention to award the tender to the best evaluated bid was circulated to all bidders on Tuesday 26 May 2020 and expired on Friday 29 May 2020.

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39 COMMENTS

  1. MMD did clean up debts between 2001 – 2008. Hoo you didn’t have pubic hair by then, sorry.
    Yes all you ticks writing may be dreaming to be employed by Lazard. Bafikkala just shut the fvck up!!

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  2. How did we end up here?, is the popular PF campaign phrase sontapo epowabomba something to be proud of or to be frowned upon? What lessons can we learn going forward.

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  3. MMD sold the mines between 2002 and 2008. They gave the multinationals the power to mine our copper and sell it abroad and keep the money there. There is nothing great about what MMD did.

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  4. Just last year, same people were crying hunger, emergency when GRZ told us climate change and drought. Today, we have a bumber harvest, the fourth time we’ve hit such levels in 26 years and these cry babies are quiet. Even this debt situation shall pass, GRZ is already on top of it by engaging Lazard. When the outcome is favourable, we shall hear this loud silence again.

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  5. Everyone in the PF is stuppid how did they get us here after promising a slice of heaven on earth. There is nothing patriotic about what the PF have done. The aim we know is once the debt is restructured maybe they will get some relief from IMF or other international bodies but this will come at a great cost to the Zambian people because we are already in a hole, things will be extremely hard for people as we try to get ourselves out of this mess created by PF.

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  6. No lessons will be learned from this, we’re Zambians! Fredson Yamba says govt has no intention of changing debt terms without consulting the creditors. Of course govt cannot do that. It can’t engage the creditors itself because it has lost credibility.

  7. So it’s true that Mr Lungu has got no vision of his own crying to a foreign company to help him sort out his mess so tell us why should we vote for you again if you can’t run the country it’s like sailing in a ship without a captain now i believe that we got no quality leaders in government but to my surprise PF is still saying there is development in Zambia what kind of development when the country can’t manage to pay back borrowed money by the way what is the GDP of Zambia as at now.
    Dununa reverse for sure scandal after scandal scandal after scandal scandal after scandal scandal after scandal scandal after scandal.

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  8. The only reason PF doesn’t want to consult citizens is because they know they have messed up! Consulting citizens would be political suicide. The only way out for PF is to insult the intelligence of the citizenry by saying we don’t have scopo to advise! However, they should not forget they will need us soon and we’ll return the favor! What Zambia needs in 2021 is a Paul Kagame who should come and clean up the rampant indiscipline in our country and restore sanity!

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  9. Chikubabe: Where will u find that Zambian to clean up the mess? And where are the institutions to work with? Paul Kagame is no model we’re looking for. However, agame at least subjects himself to media interviews because he knows that in that job he just has to do it.

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  10. Liability management is not an easy task, be it for individuals or companies which is why we are well advised to exercise fiscal discipline. It gets even more complex when indebted countries are caught up in a global crisis.

    Fact is Zambia is not the only country with a debt problem. Many other economies are not performing as they should. There are countries like Italy, Portugal and Greece. However, these are fortunate to profit from a whooping €750 billion emergency package from the European Central Bank. While European banks and governments work together to help the weaker economies absorb the shock, in Africa it’s each one for himself. Why do we even have an African Union?

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  11. PF you were refusing on debt. SEER1 is saying the truth about pf check his latest videos on youtube an ear to the ground.

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  12. @ Nostradamus, This is the WRONG CONCEPTION some of you have! You wish to marry the debt cancellation efforts with the era of Levy and Magande only when in the actual fact, these only came at the end of a painful and harsh programme initiated and overseen by FTJ’s Govt from 1992 to 2001, only completed in 2005! Bravo to him, his team and all Zambians for the sacrifices we underwent which have left us scared to date. The scars we could have healed by NOT getting heavily indebted again! We agree, Mwanawasa and Magande were good managers but most of the time they credited themselves with everything positive without attribution to those who initiated the processes! It is just unfortunate that THESE VISION COLLECTION IN PF HAS LANDED US AGAIN IN SUCH A TERRIBLE SITUATION!!

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  13. If I can remember correctly these PF guys a few years ago they were saying the debt they have accumulated is manageable they were even refusing saying the debt is not too much as some people are putting it but now the truth has come out.
    If it’s manageable why can’t you sort it out yourselves and why do you still want to use tax payer’s money ($5 million) on top of what you have borrowed and messed up by stealing 2021 you must go please this stealing is too much.

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  14. ($5 000 000) K90 000 000 Zambian Kwacha how many retirees can be cleared? All of them. Mr President consider paying retirees at PSPF Please twapapata. We left work many years ago still waiting to be paid our retirement benefits and you are looking outside for advise paying such a huge amount. Retirees are languishing no money for them to leave government institutions, PAY RETIREES CAMPAIN SHOULD BE PUT IN PLACE. I concur with you SICHALWE above, I also remember PF refused they were saying that they did not over borrow and it was manageable. Why today. In Zambia there are a lot of economists you fear to be exposed. France and LIZARD or is it LAZARD will vote for you in 2021 KALEZA KANIN’GAMBE vote yangu neo simuzaiona. Ti beche so. PAY RETIREES.

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  15. Ba MMD,UPND, and PF mwilaibape. Learn to recognize revolution.

    “New power works like a currency. It is held by few. Once gained, it is jealously guarded, and the powerful have a substantial store of it to spend. It is closed, inaccessible, and leader-driven. It downloads, and it captures.”

    “New power operates differently, like a current. It is made by many. It is open, participatory, and peer-driven. It uploads, and it distributes. Like water or electricity, it’s most forceful when it surges. The goal with new power is not to hoard it but to channel it.”-Jeremy Hermans and Henry Timms.

    PF has failed Zambia.

  16. Firstly, i want to know: How did Mwanawasa & Magande clear the Zambian debt im 2008? Answer: they negotiated themselves(Magande was the Lizard of that time). He global trotted with his team across the globe. These people when u aproach them, they ll listen to you. Magande proved it. And indeed , we did not just restructure our debts ,but we were pardoned.

  17. So these bafoons want to pay a Foreigner 5billion USD to a foreigner to jst negotiate? What nonsense is this?

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  18. Pay Magande $1billion only, give him your presidential jet, let him fly and, surely guaranteed,he ll come back here with better tangible results than this Lizard of yours.

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  19. This PF government is full of useless people. Every loan agreement has terms and conditions.

    They were rushing to sign the loan agreements without thoroughly reading fhe documents.

    They failed to manage the loans and now they want us to believe a consultant is best suited to advise them.

    Which lender will accept that nosense and later accuse the consultant not to have advised them properly.

    I’m warning you that Bally will terminate that contract with Lazard.

    You have failed to manage the economy and you must prepare go move out.

    PF must go!

  20. It’s not a coincident that they have failed to manage the loans. If the government fails to manage debts what more on important things affecting Zambians.

    We must learn a lesson on PF thieves never vote for them again. They have failed in everything.

    Bally will fix it and fix them.

    If you stole, Bally will fix you. My warning to you PF cadres and politicians who are so pompous.

    Your wealth will be scraped off by the new Bally government.

    PF must go!

  21. Here are 5 signs that you might be dating a “man-child”:
    1.You have to pick up after him. …OPPOSITION AND NOW LAZARD HAVE TO PICK UP THE BROKEN PIECES A SIGN OF LACK OF TRAINING.
    2.Talk of children or commitment brings panic to his eyes. …ALL THIS DEBT MGT ACQUIRING IS TO AVOID COMMITMENT, HENCE THE PANIC.
    3. You incessantly nag. ..You feel that if you don’t remind him of what he needs to do, said he would do, or should do, he will never do it. You invariably find yourself disappointed and let down as he doesn’t follow through with plans or commitments. He tells you to stop nagging him.TO PF ANY ADVISE TO THEM FEELS LIKE NAGGING
    4. He avoids serious conversation. …REMEMBER HOW A BILL 10 DEBATE WAS ABRUPTLY STOPPED BY CADRES
    5. His interests and friendships carry a…

  22. 5. His interests and friendships carry a middle-school vibe.SO PREOCCUPIED WITH DRIVING BUYING AND DRIVING RANGE ROVERS AND PUTTING ON CANDY COLOURED SU

  23. Ba MMD,UPND, and PF mwilaibape. Learn to recognize revolution.
    “Old power works like a currency. It is held by few. Once gained, it is jealously guarded, and the powerful have a substantial store of it to spend. It is closed, inaccessible, and leader-driven. It downloads, and it captures.”
    “New power operates differently, like a current. It is made by many. It is open, participatory, and peer-driven. It uploads, and it distributes. Like water or electricity, it’s most forceful when it surges. The goal with new power is not to hoard it but to channel it.”-Jeremy Hermans and Henry Timms.
    PF has failed Zambia.

  24. In one of Alex Chikwanda’s budget presentations, Katele Kalumba was in the public gallery. The tv camera focused on him and I saw a face that was looking approvingly at wht Chikwanda was reading out. Kalumba should still be standing by wht Chikwanda has done because he strongly disagreed with those who were saying that Zambia was being taken on a suicidal path. Kalumba is still a citizen but he has lost credibility on economic commentary.

  25. In future, hire these negotiators before…. borrowing. You must have conditions that protect unfair debt payments escalating due to natural disasters. These foreign banks give these bonds, loans speculating that they make money when you default…….why take the loans out? We need astute negotiators that can argue automatic restructuring in case of natural distress/disasters/pandemics/global economic downturns.

    Why, just sign away without protection. We need to have a constitutional change that prevents govts from not fencing off runaway situations in case of unplanned events throwing us off course. Secure all of Zambian mineral resources especially ample gold bars in vaults against loans. That is there must be an equal amount in security before you borrow. The only borrowing…

  26. Secure all of Zambian mineral resources especially ample gold bars in vaults against loans. That is there must be an equal amount in security before you borrow. The only borrowing in future should only be to buy back our mines from privatisation back to Nationalised assets.

    Govt should not be borrowing to make money but to leave money in savings growing and safe as security. God’s Financial Management is a God given Talent. Leaders must display this talent.

  27. If the title of the article is true, it means no one should vote for PF. Because if they can bring us to this point, giving them another term they will take us to a point where even the best consultant firm in the world will not be competent enough to get us out of the mess they will make because we can judge them today as having no ears. They played deaf to advise

  28. So if truly there is no local institution with the reputation to handle the problem. Is it the reputation we need or the competence? Reputation can be built by corruption too but it’s hard to build competence with corruption. Do we have competent accountants to handle the problem or are U saying our accountants are not competent enough? It’s like saying a poor man can’t handle this only a rich man can. That’s being stupid. Learn to empower your own people fools you keep making others rich while down grading your own

  29. Debt restructuring is is a subject taught at university level at Bachelors and Master business administration degree levels. Government minister education requirement is Grade 12. It is not possible to negotiate debt restructuring from a Grade 12 mind. The only thing you can do with that education is BEG.

  30. Debt restructuring is is a subject taught at university level at Bachelors and Master business administration degree levels. Government minister education requirement is Grade 12. It is not possible to negotiate debt restructuring from a Grade 12 mind. The only thing you can do with that education is BEG.

  31. INSTEAD OF DISCUSSING HOW BEST TO IMPROVE SOCIAL AMENITIES LIKE HEALTH, EDUCATION ETC, WE ARE BUSY ARGUING OVER WHO CAN BEST HANDLE OUR DEBT; ZAMBIAN OR FOREIGNER? WHAT A MESS WE HAVE FOUND OURSELVES IN.

  32. Some of you Zambian experts are a shame. You said you know what it requires to restructure the debt yet you say you can’t do it? You’re the same people who shot down CBU and ZRA when they said they’re going to use local talent to develop a solution for our tax management system. Today, they project is a success and dollars used to be paid to Indians are in the hands of the locals. When are you going to wake up to support local talent? Your degrees mean nothing if all you do is look up to outsiders for your sustenance. You’re a disgrace with your theoretical degrees if you can’t rise to a challenge to offer solutions. Who told you HH doesn’t have the right international connections and access to lending institutions? Who gets invited in their personal capacity to speak at prestigious…

  33. Niolishebo is just one of the shortsighted PFCadres with no brains: Full of envy and jealousy of the UPND.
    The mother fcker has forgotten that:
    1. there is no other political party in Zambia than the PF has borrowed and stolen USD18 billion in less than 10 years; and they are now stranded with shame. He also forgets even that Lizard had to start from somewhere, so anyone can do it if given a chance.
    3. As long as the convicted thief remains head of state, no amount of debt scheduling will save Zambians from economic collapse because Investors have confidence in Chakolwa. IMF World Bank, Credit rating agencies, etc dont trust him to do the right thing, so they cant lend him even K1.
    4. The real and only solution is the Opposition forming Govt; the International Investors cannot risk…

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  34. Advise was already given by Bally before we even got into debt but we called him names! Here we are as statisticians admiring incompetence!

    Someone advises you not to jump into the deep end of the pool since you can’t swim but you foolishly jump in and you are drowning then you ask for help after drowning!

    @fufu veve!!

  35. Your attitude @chilyata will make your candidate HH lose again. You seem to suggest in your usual hyperbole that Magande(your hero) can negotiate for Zambia’s debt restructure. Are you mad? Magande or any of the non entities you are suggesting don’t have wealth, skillset or connections to interact with wall street.

  36. So all the economists and politicians in responsible positions are admitting how useless they are? ‘No one has a track record of restructuring the debt’?But you have had an amazing track record of contracting the debts!

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