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President Lungu invites French investors in Africa to come to Zambia

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President Lungu invites French investors in Africa to come to Zambia
President Edgar Lungu speaking when he held a breakfast meeting with the French Investors in Africa at Le Meurice hotel in Paris France
President Edgar Lungu speaking when he held a breakfast meeting with the French Investors in Africa at Le Meurice hotel in Paris France

PRESIDENT Lungu has invited French investors in Africa to come to Zambia and see for themselves the country’s vast investment opportunities in the various sectors of the economy.

And French investors have described what they heard during their meeting with President Lungu as “good news” and promised to come to Zambia this year to explore investment opportunities.

The President said here yesterday that Zambia is one of the best and safest investment destinations in Africa and challenged the investors to take advantage of the country’s geographical location at the crossroads of three regional blocs.

These are the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA) and the East Africa Community (EAC).

President Lungu was speaking when he met selected members of the French Council of Investors in Africa (CIAN) at Hotel Le Meurice in Paris, France.

The President was accompanied by Minister of Energy and Water Development Dora Siliya, Minister of Commerce, Trade and Industry Margaret Mwanakatwe and Minister of Foreign Affairs Harry Kalaba.

The President’s special assistant for press and public relations Amos Chanda, Zambia Development Agency (ZDA) executive director Patrick Chisanga and other government officials were also in the delegation.
The CIAN team was led by its chairman, Alexandre Vilgrain.

“I am urging you to mobilise your members to come to Zambia, see for yourselves and explore investment opportunities available in our country,” President Lungu said.

“Your investment in Zambia is not only for the Zambian market but for Africa as well.”
The meeting, which started shortly after 08:00 hours, lasted for one hour.

The President assured the investors that his Government’s interventions will be through measured fiscal and monetary instruments to correct market distortions that may threaten overall economic stability.

President Lungu urged the investors to ignore the misinformation being circulated by some media houses and hear from him because he is the head of State.

“So forget some misguided distortions in some media outlets because you are listening to me as head of State. I oversee the entire economy and so I stand here as the country’s number-one salesman,” he said.

The President said he looks forward to seeing the French investors in Zambia and cherish the opportunity of doing business with them.

He outlined a number of comparative advantages that Zambia has over other African countries, the major one being political stability and open market economic policies.

He offered the investors a win-win situation where they make a reasonable return on their investment while his Government develops the country and improves the lives of the people.

“My belief is that any meaningful investment must result in the uplifting of people’s welfare through equitable wealth distribution,” President Lungu said.

And Mr Vilgrain described President Lungu’s presentation as good news because it has given the investors an accurate picture of the investment climate in Zambia.

“What we heard from the President is good news to us investors. The problem in the past was that many French investors in Africa did not know how to find partners to do business with in Zambia.

“But the President’s presentation was very good. I am coming to Zambia this year with some of my colleagues to come and look at areas of interest where we can invest,” Mr Vilgrain said.

President Lungu is in Paris, France, on a three-day visit to promote Zambia as an attractive investment destination and hold bilateral talks with President Francois Hollande.
He arrived on Saturday and will tomorrow afternoon leave for Lusaka.

President Lungu during a breakfast meeting with the French Council of Investors in Africa at Le Meurice Hotel in Paris on Feb 8,2016 –Picture by THOMAS NSAMA
President Lungu during a breakfast meeting with the French Council of Investors in Africa at Le Meurice Hotel in Paris on Feb 8,2016 –Picture by THOMAS NSAMA
President Lungu during a breakfast meeting with the French Council of Investors in Africa at Le Meurice Hotel in Paris on Feb 8,2016 –Picture by THOMAS NSAMA
President Lungu during a breakfast meeting with the French Council of Investors in Africa at Le Meurice Hotel in Paris on Feb 8,2016 –Picture by THOMAS NSAMA
President Lungu during a breakfast meeting with the French Council of Investors in Africa at Le Meurice Hotel in Paris on Feb 8,2016 –Picture by THOMAS NSAMA
President Lungu during a breakfast meeting with the French Council of Investors in Africa at Le Meurice Hotel in Paris on Feb 8,2016 –Picture by THOMAS NSAMA
President Edgar Lungu speaking when he held a breakfast meeting with the French Investors in Africa at Le Meurice hotel in Paris France
President Edgar Lungu speaking when he held a breakfast meeting with the French Investors in Africa at Le Meurice hotel in Paris France

ECZ to use SMS for voter verification

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ECZ to use SMS for voter verification

Chairperson Judge Esau Chulu
Chairperson Judge Esau Chulu

THE Electoral Commission of Zambia (ECZ) says it will use the short message service (SMS) facility for registered voters to verify their registration status.

Chairperson Judge Esau Chulu said this facility will be effective and enable many people check and rectify their details. Justice Chulu, however, said the commission will not extend the voter registers’ verification period when it comes to an end.

He said this in Lusaka on Friday when he addressed presidential candidates and stakeholders in the forthcoming general elections.

Justice Chulu said all registered voters are expected to check their details within the seven days window provided for by the law.

“After the close of voter registration at the end of this month, registered voters and stakeholders will be accorded a seven days’ window to inspect the register of voters from May 15 to 21, 2016,” Justice Chulu said.

He said the final voters’ register will be certified on July 31, 2016, to enable all eligible persons who will have turned 18 years by then to register as voters and participate in this year’s elections.
Justice Chulu said this is why the commission will provide an SMS facility for registered voters to verify their registration status.

“Please be advised that the commission will use the current register of voters (2011 register), for purposes of verifying aspiring candidates and their supporters,” he said.

Justice Chulu also reminded political parties that aspiring candidates and their supporters should only be those that appear in the 2011 register of voters as this will be the official register at the time of nominations.

“I urge political parties and aspiring candidates in particular to adequately prepare for the verification of supporters which will be conducted at provincial centres from May 19 to 23, 2016,” he said.

Justice Chulu also said in accordance with Article 52 (4) and (5), the commission has revised the nomination timelines to accommodate petitions that may arise from the nomination process.

“The revised nominations dates are as follows; for presidential candidates it will be May 30 to June 3, 2016, mayoral and council chairpersons, May 30, 2016, and for National Assembly and local government elections, May 31, 2016,” Justice Chulu said.

Kachinga unveils experienced Shepolopolo squad

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Shepolopolo coach Albert Kachinga has named a 28-member provisional squad for next month’s 2016 African Women Championship qualifiers against Namibia.

Kachinga’s Senior Zambia Women National Team hosts Namibia on March 6 in the first leg match of the first qualifying round for the tournament to be hosted by Cameroon between October and November this year.

Kachinga has recalled experienced striker Noria “Mbesuma” Sosala of Indeni alonside captain Kabange Mupopo of Green Buffaloes and National Assembly forward Misozi Zulu.

The team regroup in Lusaka this week.

And Kachinga believes hard work,seriousness and dedication to duty will be key as Zambia seek to make only their second appearance at the African Women Championship.

“I must remind all of you (players) that hard work and serious dedication to duty is the only secret to success. The Zambian people expect us to do well and as such we shall expect your maximum attention during this time of preparations. Added to all these things I am saying, you must be disciplined at all times” he said.

Overall winners between Zambia and Namibia will face either Tanzania or Zimbabwe in the second round.

Full Squad
Hazel Nali (Nchanga Rangers),Chiko Nkhoma (Red Arrows),Catherine Musonda (Zesco),Wendy Kunda(Moba),Margret Belemu ( Arrows), Anita Mulenga (Buffaloes),Annie Kibanji (Buffaloes), Lweendo Chisamu (Chibolya), Martha Tembo (Chibolya), Emeldah Musonda (Arrows),Nyais Moga (Moba), Jane Chalwe (Zesco),Grace Zulu (Indeni), Milika Limwanya (Breakthrough), Esther Mukwasa (Moba),Mary Wilombe (Arrows),Ireen Lungu (Buffaloes), Barbara Banda (BUSA)Kabange Mupopo (Buffaloes), Rhoda Chileshe (Zesco), Penelope Mulubwa (Zesco), Mary Mwakapila (BUSA), Agness Musesa (Buffaloes), Grace Chanda (Zesco), Hellen Mubanga (BUSA), Esther Mushota (Moba), Noria Sosala (Indeni), Misozi Zulu (Assembly).

Four cadres picked up after MMD brawl

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Four cadres picked up after MMD brawl
Nevers Mumba at a Samfya Rally
Nevers Mumba

Police in Lusaka have arrested four cadres from the opposition MMD in connection with the fracas that rocked the party’s secretariat in Lusaka.

Police Spokesperson Charity Munganga Chanda confirmed in an interview that the five have been arrested and charged with malicious damage to Property.

Mrs Chanda said the five are currently in police custody and will appear in court soon.

She confirmed that the situation at the MMD Secretariat is now back to normal but that people is still monitoring the situation.

And MMD leader Dr Nevers Mumba has described the latest fracas at the party’s Secretariat as political hooliganism.

Dr Mumba maintained that the decision by the National Executive Committee to postpone the holding of the convention is final.

He advised those aggrieved by the decision to leave the party or seek legal action.

Dr Mumba accused some MMD MPs who are opposed to the NEC’s decision of sponsoring the latest wave of confusion in the party.

ZESCO shelves tariff hike proposal

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ZESCO shelves tariff hike proposal

ZESCO 1
State power utility has announced that it has withdrawn its tariff hike application submitted to the Energy Regulation Board (ERB)

In a statement, ZESCO said it is withdrawing the application to revise upwards tariffs for all its customer categories including Residential, Commercial, Services and Maximum Demand.

It said the application to withdraw the proposal has since been approved by the ERB which effectively means that applicable tariffs with effect from midnight of 5th February 2016 are those that were in effect before 2nd December 2015.

It also noted that the billing process for post-paid customers implies that customers will only receive bills on the applicable tariffs in March 2016.

The power utility said it remains committed to tariff migration towards cost reflectivity adding that in future, ZESCO will apply to the ERB for a tariff adjustment which will be in line with the Cost of Service Study.

GBM Welcoming Bob Sichinga to UPND

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GBM Welcoming Bob Sichinga to UPND

Govt questions Mines’s retrenchment of workers when Copper Price is above their trigger level

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Govt questions Mines’s retrenchment of workers when Copper Price is above their trigger level
Christoper yaluma
Christoper Yaluma

GOVERNMENT has questioned why mining companies were quick to effect what they termed as cost saving measures even when commodity prices were still above worst case scenarios which they had indicated in their business cases.

In a statement released to the media by Press Secretary at the Zambian Embassy in South Africa, Nicky Shabolyo, on measures taken by mining companies in times of low commodity prices, Mr. Yaluma said there was inconsistency in the way mining companies behaved when they decided to shed off their workforce on account of low prices and that they were not able to sustain their businesses.

Mr. Yaluma said most mining companies in Zambia had indicated in their business plans that the only times when operations would become unprofitable in Zambia would be when prices for commodities such as copper started trading at US$2, 500 and below.

He questioned why companies in Zambia have rushed to retrenching workers even when copper prices were currently going for US$4, 000 per tonne, which was way above the US$2, 500 which the mining companies had put up as the worst case scenario which could trigger such measures.

He questioned why companies in Zambia have rushed to retrenching workers even when copper prices were currently going for US$4, 000 per tonne, which was way above the US$2, 500 which the mining companies had put up as the worst case scenario which could trigger such measures.

“When copper prices were above US$9, 000 per tonne, these companies made windfall profits. It is mind boggling that they do not want to refer to these supper profits when it comes to low commodity prices.

One would expect that they should have made savings to cushion effects of bad times as what we are going through today but you find that all of them have externalised these profits,” Mr. Yaluma said.

Meanwhile, government has pressed on mining companies to diversify their operations by investing in power production in order to stabilise production in the industry.

Mines Minister, Mr. Christopher Yaluma, who is leading a Zambian delegation to the 2016 Investing in African Mining Indaba in Cape Town, South Africa, told the 4th Annual Ministerial Symposium yesterday, that with the low electricity tariffs in the country, mining companies could not expect Government alone to sustain their operations.

Mr. Yaluma said mining companies should consider going into joint ventures with Zambians and invest in a mix of power sources.

Others in the delegation are Mines Deputy Minister, Mr. Richard Musukwa; Finance Deputy Minister, Mr. Christopher Mvunga; Zambia’s High Commissioner to South Africa, Mr. Emmanuel Mwamba, senior officials from the Ministry of Mines and the High Commission of Zambia in Pretoria.

“We need some serious energy mix and mining companies must play a clear role. It is regrettable that we allowed the investors to do away with power plants when they took over the mines because they saw a cheap source of power in Zesco. We should go back to the ZCCM days when all divisions had their own power sources. I raised these issues at the Ministerial Symposium and the mining companies present acknowledged.”

The Minister pointed out that it could have been a lighter burden on Government had the mining sector shown willingness to support the proposal to take electricity tariffs to cost reflective levels.

Zambia currently ranks among countries charging the lowest electricity tariffs on the continent, a situation Mr. Yaluma said had made it difficult to attract private sector investment.

Currently Zesco pays about 11 cents per kilowatt for electricity generated locally and about 19 cents per kilowatt for imported power. The utility company in turn sales this at about five cents to the mines.

Currently Zesco pays about 11 cents per kilowatt for electricity generated locally and about 19 cents per kilowatt for imported power. The utility company in turn sales this at about five cents to the mines.

Mr. Yaluma said Government was working on normalising this as mandated by last year’s meeting of SADC Ministers of Energy which resolved that all member states should attain cost reflective tariffs by 2019.

He said this year’s mining indaba was taking place at a difficult time not only for Zambia but the African continent. He said it was gratifying that the African Union (AU), under the African Mining Vision, had directed countries to standardise instruments governing mining investment in all countries.

Mr. Yaluma said Zambia’s challenges stemmed from factors over which Government had no control citing the low water levels that have reduced the country’s energy generation capacity. This has consequently led to reduced low production in the mining and various other sectors. The challenges have been compounded by the low commodity prices which have greatly reduced on the country’s foreign exchange inflow.

Fishmonger uses wife’s pubic hair to boost business

Entertainment Editor
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Fishmonger uses wife’s pubic hair to boost business

 

court

LIKE a script from a Nollywood movie, the Kabushi Local Court heard how one Ndola husband got his wife’s used sanitary towels as well as her pubic hair and used them as charms to boost his fish business.
Could hear a pin drop in the packed courtroom as Vainess Musonda explicitly narrated how her husband Lawrence Chileshe also stole her underwear for his rituals to boost his fishing business in Mpulungu district.
Musonda complained before presiding magistrate Serah Bwalya and senior court magistrates Besa Mushibwe and Mildred Namwizye and A woman of Ndola’s Mushili township that since the incidence, she has not been able to have her monthly period.
“I do not know where he took my pubic hair, my used sanitary towels and underwear. I no longer have my monthly period since then. And he never gives me a reasonable answer when I ask him,” she said.
Musonda, 32, said problems in their eight-year-old marriage started when she was pregnant with their second child.
“He requested that he will be shaving me because I was pregnant with our second child. But he got my pubic hair which he then used as part of a concoction to boost his fishing business at the banks of Lake Mweru,” she said.
Musonda who sued her husband for divorce said she has also been having difficulties sleeping at night.
“But when I wake up to pray, he gets upset and starts insulting me saying I disturb him with my prayers. I know he is a ritualist because he openly confessed to me once and said he gets his charms from Kaputa before going fishing in Mpulungu. He is now wealthy and has acquired a lot of property,” she said.
However, Chileshe denied using his wife’s pubic hair and used sanitary towels as charms to boost his business.
“I touched them but I never got them. I cannot consent to the divorce because I still love her,” Chileshe said.
The court advised the couple to seek spiritual guidance to resolve their problems.

(DailyMail)

HH to address diaspora and business community in South Africa

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HH to address diaspora and business community in South Africa
UPND President Hakainde Hichilema
UPND President Hakainde Hichilema

UPND President Hakainde Hichilema is in South Africa this week to address a number of forums, including members of the Zambian diaspora and business community in Johannesburg, investors at the 2016 Mining Indaba and the Graduate Business School at the University of Cape Town as part of their Distinguished Speakers Programme.

The focus of discussions will be on the strong economic potential in Zambia and Southern Africa more broadly, as well as how current challenges facing the region can be overcome. In particular the UPND leader will be explaining what action can and should be taken by Government to address major domestic risk areas that include those identified by the World Bank in its 2016 Zambia Economic Brief, namely a worsening power sector crisis, deterioration in confidence, and another low harvest. Mr Hichilema will attempt to explain how Zambia can bounce back with the right leadership.

As he has argued at home, Mr. Hichilema will reiterate that as a sovereign nation Zambia can also control how it plans and reacts to changes in the external environment, whether it relates to weather or commodity prices, and that Governments must give no excuses but devise ways and means of shoring the external factors which affect every country that has an economy that is structured like ours that exports one commodity.

He will continue to encourage business that his vision if elected President is to improve the business environment and reduce the costs for companies by cutting red tape and streamlining processes in order to boost economic activity, create jobs and reduce prices that have been sky rocketing as inflation reached more than 20% in December 2015 from 7.7% a year ago. Mr. Hichilema will also argue for the need to cut waste and boost efficiency at the heart of Government, in support of calls by the World Bank and others for Zambia to move ‘back onto a sustainable fiscal path’. Alongside this, the UPND leader will argue that Zambia cannot afford to continue to underinvest in education.

As interest mounts ahead of the upcoming elections on 11 August, Mr. Hichilema will also address concerns regarding the path towards elections. He will talk about the challenges opposition parties are facing which include application of the Public Order Act, access to public media and the accompanying censorship. He will also explain how the UPND and other opposition parties are actively working to engage the Electoral Commission of Zambia on these and various other issues such as transparency and finalisation of the electoral register. Mr. Hichilema is also scheduled to speak with a variety of international media and share his vision for Zambia once elected into office.

ZCTU and FFTUZ to merge before end of 2016

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ZCTU and FFTUZ to merge before end of 2016

Lusaka labour day
Lusaka labour day

The Zambia Congress of Trade Unions and the Federation of Free Trade Unions of Zambia have opened talks over the possibilities of creating a merger.

ZCTU Director of Public and International Relations Martin Chembe disclosed that the two unions are looking at merging before the end of the year.

“It is a long process but we are glad to report that work has finally commenced. We held at workshop last week organised by the Labour Institute of Zambia at which modalities of creating a united labour movement was discussed and wok has started,” Mr Chembe explained.

“This is just an initial stage. A committee has been set up comprising members from FFTUZ and ZCTU to oversee the process. We have realised that speaking as a fragmented unit has not helped matters. We are hopeful that we will unite and speak with one voice. We will have fewer unions but much stronger,” said Chembe.

He added that officials from the two unions have realised that having a fragmented labour movements contributes to weakening the voice of the worker.

Mr Chembe said the officials from the two respective unions have been tasked to go countrywide and explain the development to their affiliate unions.

“We are hoping that the feedback from our affiliates will be positive because that is what will give us the impetus to press forward and complete the process of merging,” he said.

Parliament resumes sitting on Tuesday

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Parliament resumes sitting on Tuesday

Traditional dancers in action at Parliament grounds
Traditional dancers in action at Parliament grounds

The fifth session of the eleventh National Assembly, which adjourned sine die on Friday 11th December 2015, resumes sitting, Tuesday.

Clerk of the National Assembly Doris Mwinga announced the resumption of parliamentary sittings.

This is the last sitting of the Eleventh Assembly whose life started in 2011 with the coming into office of the Patriotic Front.

President Edgar Lungu is expected to dissolve the eleventh National Assembly in May, in readiness for the General elections slated for August.

However before adjourning sine die on December 10th 2015, Members of Parliament spent the whole night debating amendments to the draft constitutional amendment bill of the National Assembly of Zambia number 17 of 2015.

Several amendments to the bill were passed during the debates while others were rejected.

Those rejected included the establishment of provincial assemblies and increasing parliament by 94 nominated members of parliament.

This process culminated into President Lungu early last month, assenting to the constitutional bills.

Meanwhile, Parliament was last year a hive of activities as lawmakers dealt with several issues affecting the country.

The House witnessed the arrival of three new members, Anthony Kasandwe for Bangweulu under the PF ticket, Teddy Kasonso under UPND for Solwezi West and George Mwamba of the PF for Lubansenshi constituency.

It was also during this sitting that Speaker of the National Assembly Patrick Matibini ruled that Geoffrey Mwamba was no longer Kasama MP after he accepted to serve as UPND Vice president, a matter which is now in court.

Frank Bwalya is an opportunist-Miles Sampa

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Frank Bwalya is an opportunist-Miles Sampa
Miles Sampa gestures the DF symbol during the radio programme on Hot FM
Miles Sampa gestures the DF symbol during the radio programme on Hot FM

Matero Member of Parliament Miles Sampa has described Patriotic Front Deputy Spokesperson Frank Bwalya as an opportunist who waited for late former President Michael Sata to die for him to take over the ruling party.

Mr. Sampa says Mr. Bwalya has no moral right to question his relationship with the late former President.

He has wondered why Mr. Bwalya can talk about his relationship with late President Sata when it was in fact him that made his work difficult at State House.

In an interview with Qfm News, Mr. Sampa has recalled how critical Mr. Bwalya became of President Sata when he formed the Alliance for Better Zambia (ABZ).

Mr. Sampa has since asked Mr. Bwalya to leave him alone now that he has left the PF, and instead worry about the number of people leaving the ruling party.

Mr. Sampa was reacting to the recent remarks by Mr. Bwalya that his de-registered political party the Democratic Front (DF) was formed at the time late President Sata fell ill.

Two MMD factions clash at the party’s Secretariat

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Two MMD factions clash at the party’s Secretariat
Damaged Vehicles in the MMD cadres fracas
Damaged Vehicle in the MMD cadres fracas

Two MMD factions today crashed at the party’s Secretariat in Lusaka as a group calling for a convention tried to deliver a petition to the secretariat was stoned by supporters of Nevers Mumba the MMD President.

However, the fight did not take long to end as the the group calling for the convention over powered the Nevers Mumba faction who were just a handful.

The cadres went on to break windows of the secretariat offices and Deputy National Secretary Wine Zalomis’s vehicle a bus belonging to Flash buses has had it windows shattered as it was caught up in the fracus.

And addressing the media, Lusaka Province Youth Chairperson Elison Monday Malambo said they had gone to the secretariat to petition the party to go to the convention but that supporters of Nevers Mumba started stoning them.

He said it was disappointing that a leader who is a man of God can go to such an extent just to hang onto the Party Presidency adding that Dr Mumba was paying thugs to defend his illegal stay as party President.

Meanwhile Inspector General of Police Kakoma Kanganja through a whatsapp message said the conduct of the cadres is abuse of the freedoms people are advocating for. He said police will no longer tolerate it anymore as Enough was enough.

The unruly cadres were only dispersed after police fired tear gas canisters after which Ms. Winnie Zaloumis was rescued by police from her hiding place but failed to make a comment on the matter

Damaged Vehicles in the MMD cadres fracas
Damaged Vehicles in the MMD cadres fracas
Damaged Vehicles in the MMD cadres fracas
Damaged Vehicles in the MMD cadres fracas
Damaged Vehicles in the MMD cadres fracas
Damaged Vehicles in the MMD cadres fracas

B-Flow to collaborate with international recording artist Emeli Sande

Entertainment Editor
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B-Flow to collaborate with international recording artist Emeli Sande

b-flow

International recording artist Emeli Sande , who is know for hits such as “Next to me” , “What i did for love” , “Free” ,”Wonder” and many more, is collaborating with Zambian artist B-Flow on her upcoming album . The duo has recorded 2 songs together.

This is what B-Flow had to say :

“I didn’t ask her, she called me and asked me if I would be interested in featuring on two songs on her 2nd album. I couldn’t believe it. I didn’t even know what to say but I said a BIG YES. So yesterday we drove to Oxfordshire from East London and camped at Angelic studio where we had a night recording session and finished the first song. We are now working on the 2nd song. Her album sounds really great. She also wanted me to listen to all the songs and critique her.”

"second studio session with Emeli Sande in Oxfordshire England "
“second studio session with Emeli Sande in Oxfordshire England “

 

 

"Night recording session"
“Night recording session”
"Teaching my friend Emeli Sande how to sing "Next to me" in Bemba
“Teaching my friend Emeli Sande how to sing “Next to me” in Bemba”

This is a great opportunity not only for B-flow but for Zambian music as a whole to be showcased on the world stage !

Emeli Sande Next to me 

Emeli Sande Wonder

B Flow Cry of a woman

B Flow Side plate

https://www.youtube.com/watch?v=yPXMkUy0SG4

BY KAPA187

Argentina .. Is this where Zambia is headed?

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Argentina .. Is this where Zambia is headed?

Argentina says wants debt deal as fiscal deficit balloons

Argentina’s new finance minister said it was imperative to resolve the country’s legal dispute with U.S. creditors over unpaid debt because financing of the country’s fiscal deficit this year may depend on progress on the issue.

Solving the more than decade-long debt battle would enable Argentina to return to global credit markets and stop financing the deficit with the printing presses, a tactic which helped fuel double digit inflation under the previous government.

Finance Minister Alfonso Prat-Gay said the negotiations would be tough but it was in the country’s interests to reach a deal.

The previous government’s failure to do so had cost the economy, he said, with creditor claims in New York having risen to $9.9 billion from $2.943 billion originally.

“We’re not going to ignore the issue. It’s not our mess but we have no problem in cleaning it up,” Prat-Gay told a news conference.

Former President Cristina Fernandez had refused to settle with the funds that bought Argentine bonds on the cheap after its massive 2002 default and then held out for better terms when Argentina restructured its debt.

They are broadly known in Argentina as “vultures” for picking on the carcass of the economy after the default plunged millions of Argentines into poverty.

Finance Secretary Luis Caputo met with for the first time with the funds on Wednesday in the New York office of the U.S. court-appointed mediator Daniel Pollack for preliminary talks.

In addition to the debt battle, Argentina’s new center-right government, which took office in December, also inherited a primary fiscal deficit of 5.8 percent of GDP in 2015, Prat-Gay said.

“The primary fiscal deficit is at its highest in 30 years,” he said.

Fernandez’s two terms were characterized by heavy government spending that aimed to boost the domestic economy.

The new government aims to reduce this deficit to 4.8 percent of GDP this year and 3.3 percent in 2017, in part by eliminating subsidies for public services for the 30-40 percent of wealthiest Argentines, Prat-Gay said.

Subsidies would be maintained for those who needed them, he added.

Inflation has already eased back to levels seen before Argentina’s 26.5 percent devaluation in December, Prat-Gay said.

The new government aims to bring it down to between 20 and 25 percent this year from 28 percent in 2015.

By the end of Macri’s term, in 2019, inflation should be around 5.0 percent, the minister said.

Source :CNBC news

Argentina history

1983

Human rights abuses, a floundering economy and the disastrous Falklands War left military leaders disgraced by the 1983 election. Spending increased under the next president, Raúl Alfonsín, but government revenue all but disappeared. Only 30,000 citizens paid income tax in 1989 and inflation increased to over 5,000 percent. Power passed to Carlos Menem, who slashed import tariffs and privatised industry, while widespread corruption scared off many investors.

Nov 2001
The government stopped payment on more than $100bn in debt, the world’s largest sovereign debt-default. In the space of two weeks, five different presidents held office. Unemployment soared above 20 percent, with people leaving the country in droves, as Argentina entered a deep recession. The national economy shrunk by a fifth. As part of a debt-restructuring plan, the majority of creditors accepted new bonds that were worth roughly 35 cents to the dollar.

2003 – 2014
Néstor Kirchner was elected in 2003 and brought with him a return to populist politics. His leftist policy focus on social welfare and economic intervention initially steered the economy out of trouble. He was succeeded by his wife, Cristina Fernández de Kirchner, in 2007, who continued what would become known as Kirchnerism. The economy slumped in 2010 following Néstor’s death. With inflation steadily increasing again, Argentina defaulted on its national debt in 2014.

By Patriotic Zambian

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