Finance Minister Alexander Chikwanda says the recently oversubscribed bond is proof that international investors have confidence in the Zambian economy.

Mr. Chikwanda has also observed that the oversubscribed bond is an indication that government is on the right track and has the confidence of key stakeholders.

The Minister was speaking in Washington DC when he and his Local Government and Housing counterpart Emmanuel Chenda has called on Zambia’s Ambassador to the US, Palan Mulonda.

And Mr Chenda says his mission to the high level meeting on water and sanitation in Washington DC was to share and learn from the best practices especially those on the African continent.

This is according to a statement issued by First Secretary for Press and Public Relations at the Zambian embassy in Washington DC, Patricia Littiya.

Meanwhile, the Economic Association of Zambia -EAZ- has welcomed Zambia’s successful issuance of a 1-Billion US dollars second sovereign bond on the international capital market.

EAZ president Isaac Ngoma however says though the country needs the money, the bond has come at a higher cost compared to the 7-hundred and 50 million US dollar bond which the government successfully issued in 2012.

Mr. Ngoma notes that there is need therefore to sustain the repayment of the bond on time and that government must state exactly how the money will be used.

The EAZ president was speaking on Kwacha Good Morning Zambia programme on ZNBC television on Saturday.

Acting Finance Minister, Edgar Lungu on Tuesday said like the first sovereign bond of September 2012, the second bond has been a resounding success and was oversubscribed.

In a statement to ZNBC, Mr. Lungu said the move is an expression and affirmation of the confidence the international investor community has in Zambia.

Mr Lungu says the bond proceeds will be injected into growth-prompting projects in various critical sectors of the economy, such as the transport and energy sectors.

A sovereign bond is a debt or loan issued by a country.

MMD President Dr Nevers Mumba has declared that the PF government is a reckless, irresponsible and immoral government that has led Zambia into a debt crisis.

Dr Mumba revealed that the PF government will by the end of 2014 push Zambia’s total debt stock to around US$ 11 billion.

He explained that the PF government had borrowed 3.5 billion US$ dollars as at March 2014 at the expense of Zambians.

Dr Mumba further explained that the recently obtained US$ 1 billion second sovereign bond has pushed the country’s external debt stock to $ 4.5 billion.

The MMD leader was speaking in Solwezi Friday when he addressed scores of MMD supporters that welcomed him at Solwezi Airport.

Dr Mumba was in the area to witness the installation of MMD councilors Ezekiel Mulonga and Brian Kajoba as Solwezi Mayor and Deputy Mayor respectively.

He said the Ministry of Finance website shows that the current domestic debt stood at 3.5 billion domestic debt as at March 2014.

“We know that this government is also heavily borrowing from the domestic market and crowing out the market. On a monthly basis, it is borrowing K250 million (dollar equivalent) and would have borrowed an additional US$ 3 billion domestically by end of 2014,” Dr Mumba stated.

He added, “What is even more shocking is the rate at which the country’s debt stock is swelling. Within two years of the PF, the country’s debt stock has bulged due to excessive appetite for debt. This government is reckless and just thinking of eating today.”

Dr Mumba explained that the MMD inherited a debt of slightly over six billion from UNIP government in 1991 which was contracted over a long period of years.

“When the MMD government came in, it received a lot of good will from the international community. Everyone was lining up to lend money to Zambia but due to its prudency.

The MMD government never went out soliciting to borrow but financial agencies were lining up offering funds for borrowing but the government elected to exercise prudent management and only dealt with multilateral lending institutions such as the IMF and the World Bank with favourable repayment conditions.”

Dr Mumba stated, “The PF has shown dangerous appetite for borrowing. At the rate they are going, this government could borrow from everyone willing to lend. We are watching their steps closely in Lusaka because they may end up borrowing from Katondo Street. PF is borrowing from anyone who has money to lend.”

Dr Mumba said the PF government’s debt policy is unacceptably reckless and might plunge the country into serious problems.

“This behavior by the PF government is unacceptable. The PF is behaving like that frog that over eats such that it dies immediately after it gets full. It never worries about tomorrow, all it does is eat, eat and eat until it dies.”

Dr Mumba said the PF government behaving like that frog that never considers the consequences for tomorrow and the equity of the nation.

“They are now saying Zambia’s asset value in terms of national productivity is around US$ 25 billion dollars according to the revised GDP estimates which will are disputing because it is an over statement. The true value of our economy is around US$ 18 and 21 billion but what is even more important to consider is that the PF government has now borrowed above half of our equity which is criminal. Any financial manager will tell you that borrowing above half of your equity is criminal.”

Meanwhile, Dr Mumba also charged that the wealth generated from the North western province is being mismanaged.

Dr Mumba said the PF government is creating conditions that are making it difficult for residents of North western province to benefit from the minerals mined in their area.

He promised that the MMD will ensure that Northwestern province develops socially and economically when it gets back to power.

And Dr Mumba has urged the church in Zambia to actively participate in the economic activities of the country.

He also called for leadership of integrity in politics in order to position Zambia towards a path of social and economic development.

ZCTU president Leonard Hikaumba said government through the Ministry Labour has continued saying existing labour laws are under review but wondered who is reviewing them when the labour movement as a social partner has been left out.

“We shall continue propounding on the need to have revised labour laws. Our Labour ministry has been saying this process is on going, as social partners we wonder who is dealing with that process if we are not involved?,” questioned Mr Hikaumba.

“Our worry is more than 2years down the line of the new government we do not have these revised labour laws and the question is what is the government doing? We need to have these new laws, we should no longer continue lamenting about the poor labour laws when every thing is within the reach of government,” he said.

And Mr Hikaumba said the labour movement is facing numerous challenges due to the changes in the market forces which is affecting the workers negatively.

“We are facing raising unemployment levels, reduced social security provisions, job loses as a result of company closures or relocations and the aggressive challenges brought about because of neo-liberal policies,”

He said the challenges are having an adverse impact on employment relations in the country such as casuallization which has become rife in the country.

Mr Hikaumba said this when he officiated at the launch of the Meanwood General Insurance new legal expense insurance product for the trade union

And the labour movement leader said unions should start exploring new ways of dealing with the challenges.

He further commended Meanwood General Insurance for providing an opportunity to the movement for them to forge ahead in their quest for better working conditions.