Ministry of Finance Permanent Secretary, Mr. Mukuli Chikuba has emphasized that Zambia has not defaulted to any of its creditors on its foreign debt.
Speaking in the interview Mr. Chikuba said the action taken by the government to seek a 6 months debt repayment suspension was to promote transparency and understanding among Eurobond holders.
“We have paid the debt service repayment due to the Eurobond.” he said, before adding: “Our debt repayment service to the $750million Eurobond was bond two days ago.”
He said Zambia like many other countries, has been impacted economically negatively by the pandemic.
“We have been impacted negatively by the Covid-19 pandemic.” He said.
In April 2020, the World Bank’s Development Committee and the G20 Finance Ministers, endorsed the Debt Service Suspension Initiative (DSSI) in response to a call by the World Bank and the IMF to grant debt-service suspension to the poorest countries to help them manage the severe impact of the COVID-19.
Mr. Chikuba said to this effect, Zambia has applied for the Deby Service Suspension Initiative (DSSI) to the Paris Club to address the challenges that have come with the Covid-19 pandemic.
He said the action done by the government was to encourage transparency and have taken the initiative to commercial creditors too. He said government has reached out to the banks and commercial creditors such as the Eurobond holders, to agree on the debt repayment service schedule and seek 6 months suspension.
He said after the Notice was deposited on Tuesday, the process will begin on 29th October 2020 to obtain consensus from the Eurobond holders so as to achieve a collaborative agreement on the debt service schedule.
I verily tell you that even after 6 months, you will ask for another extension. You are in a bad state now because of reckless borrowing. You made a mistake, learn from it.
SO THERE, ALL THE DOOMSTERS AND UNPATRIOTIC UPND WHO WERE SALIVATING AT ZAMBIA BEING DECLARED BANKRUPT: YOU WERE WRONG.
I STILL URGE ZAMBIA TO PLOT A DIFFERENT ECONOMIC MODEL. LESS AND LESS OF SHOPPING MALLS AND MORE FACTORIES TO LESSEN THE CLAMOUR FOR FOREX.
WHAT A WORLD WE LIVE IN. USA CAN PRINT 2 TRILLION DOLLARS AND NOBODY BAT’S AN EYE LID BUT ZAMBIA OWES 10 BILLION DOLLARS AND ALL HELL BREAKS LOOSE.
SO THERE, ALL THE DOOMSTERS AND UNPATRIOTIC UPND WHO WERE SALIVATING AT ZAMBIA BEING DECLARED BANKRUPT: YOU WERE WRONG.
I STILL URGE ZAMBIA TO PLOT A DIFFERENT ECONOMIC MODEL. LESS AND LESS OF SHOPPING MALLS AND MORE FACTORIES TO LESSEN THE CLAMOUR FOR FOREX.
WHAT A WORLD WE LIVE IN. USA CAN PRINT 2 TRILLION DOLLARS AND NOBODY BAT’S AN EYE LID BUT ZAMBIA OWES 10 BILLION DOLLARS AND ALL HELL BREAKS LOOSE.!
whoever supplied those chairs behind bana gong’a boma, they are worn out before we even finish repaying nkongole.
This is tantamount to default
“We have been impacted negatively by the Covid-19 pandemic.” He said. The explanation has some truth. But the greater truth is that the state of affairs in Zambia, including state of economy has one undeniable cause: A clueless and reckless government of an incompetent leader who should have resign long time ago. Lungu is unfit to be president. He doen’t know what he is doing. Let us just accept the hard and liberating truth.
Wht has been serviced is interest on the bonds and not the debt as in the capital sum itself.
You are just using covid as an excuse otherwise even without covid you would have failed to pay. Covid is merely postponing the debt not freeing you from it. The time to pay will still come sooner or later.
Impacted or not impacted by covid 19 , it’s just the same with you guys.Nothing trickles down to the poor, all we see are fat cats driving flashy cars.
Lungu needs GRZ money for elections to pay his thugs and bribe voters….
Covid is a convenient excuse to cover the rotten economy and kwacha that was always headed towards the scrap heap under lungu……
The IMF and west know this , that’s why they refused to give lungu any covid money ……..it would not have made any difference to the economy or the common Zambian.
Find ways and means of raising money and pay back. Inkongole tashifwaika postponement, it is not a solution it just takes the problem forward.
Bufi bufi bufi. Even before corona this country could have failed to pay back. They are very excited when borrowing pakubwesha mafya yekayeka. Even the toll plazas have not helped repay the loan sure! This government took back this country a thousand steps backwards
Bufi bufi bufi. Even the toll plazas have not helped repay the loan sure! This government took back this country a thousand steps backwards
Ba Mwankole bafilwa ukulipila inkongole
If you can defer the interest what about the principal amount?
There is no way out for this PF government of thieves. All these debt will never be redeemed.
PF must go!
ZAMBIA FIRST, u don’t know wht u are tslking about. Those who hv invested in shopping malls hv risked their own money and they are not answerable to u. Why aren’t u asking if sinking money in a state-owned airline is goid business? Why aren’t u asking hw the coconut palm plantation is doing in Mpika? Why aren’t u asking hw the IDC group of companies is doing where lots of your money has been invested in your name?
Bold letters again. Most people don’t even care to understand the explanation from the PS. They just spitting attacks as their temper tantrums and blood pressures rise.
Told you already and will tell you again: it’s not unusual for economies to be struggling to repay their debts in this time. Developed countries are sitting in the same boat too. Only difference is that they have the IMF and the World Bank on their side and we do not. It is therefore not only natural but imperative for our government to ask for more time to repay and also bargain for more favourable interests.
It’s the perception of the financial press. And perception is everything in financial markets. These newspaper edited by financially-trained and people and they know wht they do. If we’re managing our perception properly, the editors of the Financial Times and Bloomberg would be more than happy to receive a letter from Zambian officials to correct the markets. These publications are only an e-mail away.
Is Chikuba a fool, an ***** or simply retarded? Anyone who knows the state of our fiscus will tell you that with or without the pandemic, Zambia would still have defaulted. The 6 months debt repayment suspension is clearly tantamount to kicking the can along, come the end of the 6 months Zambia will still be in default. And for *****ic fools like Kainyokolola Zulu, just watch the extent to which the kwacha will slide during that 6 months, munyelile linja tuni!
Teacher, I have a kweshen: What will happen if the owners of this debt refuse the six months extenshen!? Will it still be not a default!? Teacher I was just asking now you want to call the police!? Me I was just axing a kweshen!
Zambia is the owner of the debt because it issued it. I doubt it the bond-holders will refuse because they hold no collateral after all. Interest has been serviced regularly and that’s a good thing.
That’s is defaulting in principle you dull chap. If not given that much time as you are requesting won’t you default?
Thank you for giving us official information. The upnd propaganda lies are only showing how deceitful and dishonest that tribal grouping is
ZAMBIA IS BANKRUPT FULL STOP !!!!!!!!!!!!!!
Rowdy, I normally don’t like to tangle with your kind. Zambia is not asking for too much here. It’s only deferment of interest payments for 6 months. It’s different from asking for interest payments to be waived. I expect Zambia to get a deal from bond-holders. It cannot be a default because it will be by mutual agreement between the bond issuer (Zambia) and the bond-holders.
Even if you are given another one year extension, you are still likely to default. That is what reckless borrowing does. Even in a home, do you borrow like that sure. And still very arrogant and yet the country is on its knees economically.
Clueless – and you want to com back to rule next year, how sad
“We aren’t defaulting. We just can’t pay you.”
That’s exactly. What. Defaulting. Means.
Lord almighty. What a fool and a liar.
Sale all govt luxury SUVs and we wil no longer be in debt.
“We have paid the debt service repayment due to the Eurobond.”
Some debts weren’t intended to be repaid. The fact is that the IMF/WB pressured the Zambian government to not collect a windfall tax. So did the corrupt Chamber of Mines. They pressured the government to take debt instead of collect profits from the mines, with the idea that the Zambian taxpayer would be robbed twice: once by forfeiting billions in taxes, and again by being obligated to pay billions in debt. Debt instead of taxes was allways a crooked proposition.
“We have paid the debt service repayment due to the Eurobond.”
Some debts weren’t intended to be repaid. The fact is that the IMF/WB pressured the Zambian government to not collect a windfall tax. So did the corrupt Chamber of Mines. They pressured the government to take debt instead of collect profits from the mines, with the idea that the Zambian taxpayer would be robbed twice: once by forfeiting billions in taxes, and again by being obligated to pay billions in debt. Debt instead of taxes was allways a crooked proposition.
I hv no problem with Zambia gettingva deal with bond-holders because that temporary relief would be good for all of us. For those who hv a problem with even that, at least ask government wht it thinks will change in the 6 months if interest payments suspension is secured. That’s hw u argue with sense.
@Zambia First… Developed countries create money all the time, yes, and accrue huge debts, but they are able to sustain this in the long run because their currencies are stronger and they produce value goods. OUR currency values are tied to theirs. As long as we do not have enough industries in Zambia producing enough finished goods, utilising a lot of local raw materials and thus creating a large tax base and exporting more, we will forever be in a financial crunch. Printing more money in this latter scenario makes things even worse – hyperinflation.
“Our debt repayment service to the $750million Eurobond was bond two days ago.”