Government has revealed that the country’s domestic debt stock currently stands at $1.93 billion (K10 trillion ).
Principal economist of domestic debt under the investment and debt management department at the ministry of finance and national planning, William Kabwe said government is rolling over the domestic debt and has decided to only engage into further borrowing to manage the already matured domestic debts.
Mr. Kabwe however said that government is well aware of the fact that domestic borrowing is on the increase and should be effectively managed because it is dangerous for the economy.
He said government has already began working on the reduction of the Treasury bill restricting the debt management office at the ministry to bring it to appreciable international standards.
But a report on domestic debt management in Zambia by AFRODAD in conjunction with the Civil Society for Poverty Reduction has divulged that government has failed to put in place adequate legal frameworks that are all encompassing to forge for efficient domestic debt management.
Presenting the report for validation in Lusaka this morning, to the civil society, the private sector and some government officials, CSPR Programmes Manager, William Chilufya,called on government to urgently implement the national domestic debt management strategy.
QFM
Not a bad figure.It is like 0.27% of our country’s GDP. The economy is good shape and should start created serious jobs from September going forward and come 2011, every sector of our economy will be firing on all cylinders and the demand for our copper looks set to continue with numbers that came out of China this morning. Near term future is indeed bright for our country
Tata kalanda, kwena ba fikamba balelya umukiboni!:((
We could be worried had Zambia been carrying on a fragile economic base and inadequate economic policy reforms which is no long the case under the RB administration. I say so because as many of you economic intelligentsias know, the lack of diversification and competitiveness of the economy is always a major constraint to both sustainable poverty reduction and debt strategy. Without addressing the risk and uncertainty inherent in the investment climate, it is difficult to stem capital flight, and prevent future indebtedness. Zambia under RB has overturned the economic failures into exponentially gaining activities. This debt will be arrested and liquidated without ripple effects. There is even Government strategy to address the stock of capital flight from the country as it were then…
There is even Government strategy to address the stock of capital flight from the country as it were then more than twice the size of GDP. Instead, efforts are being made to attract it back.
Under RB Zambia has strong legal and institutional framework for public resource management today like never before. We have an administrative capacity to design and manage public resources as central to both the debt overhang problem and general economic management many developing countries are having. The Government has instituted an Integrated Accounting System that is proving effective in resource management.
The RB administration has made good strides in arresting the culture of huge Waste of public resources. President Banda has acknowledged the flaws and need for correction in the public sector. He has identified gross inefficiency and waste of public resources as major issues, which also compound the debt problem if leadership is found wanting. This he is systemically arresting it. In conclusion, all loans drawn have been economically viable to generate returns to service the debt and realize national development.
#1 MMD Bootlicker.. you talk too much but don’t know anything. Zambia’s Projected GDP 2010 is about $17billion, only .. $1.9billion / $17billion = 11%.. therefore we are in a debt crisis and thats why the exchange rate now at K5,200/$1 because venture funds that had bought GRZ debt paper have decided to move their money out on maturity rather than rollover, causing scarcity of dollars. They are doing this because 11% debt vs GDP ratio is alarming and increases investor assessment of GRZ sovereign risk and risk of default or loss from further adverse movement of ZMK vs USD exchange rate 1, 2, 3 years down the line . would have capital loss an interest earned wudn’t compensate.. FYI GRZ borrows in ZMK only on the domestic market.
More evidence of the legacy of 20 years of mismanagement. Meanwhile, millions of dollars are stolen every year, much more misspent on programs that should not have priority and yet more on making our politicians more and more comfortable while the nation gets poorer and poorer.
The country’s external debt in is now US$1.2 billion up from US$500 million in 2005.
to TO MMD CHIEF BOOTLICKER
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MMD chief booklicker africa’s most gifted scholar
I recommend what the 3Es of Economists at State House, Economists at BOZ and Economists at the MoFNP for a fabulous job they are doing in the national economy. However I recommend that government should take more steps to domesticate technical assistance on this debt management. When I look beyond this domestic debt, I see that much of the debt of 1968-2005 came with foreign sub-contracted technical assistance, but these merely funded expatriate consultants and with hardly any domestic capacity built. Let’s dialogue among ourselves as Zambians to evolve a strategy to rely wholly on Zambian experts for technical assistance, and where such skills are unavailable, to devise mechanisms to ensure that any expatriate consultant effectively transfers the skills to Zambians.
We have among ourselves Zambians who are qualified Financial Engineers, applied and development economists useable.
I recommend the government to take issues of contingent liabilities more seriously like President Banda has thus far proved doing. There are excellent systems for managing contingent liabilities Zambia has kept finding herself in. Let’s look at those in Chile for private sector debt and those in India/South Africa for decentralized borrowing by public institutions whose experiences we could draw upon. Certainly there is no recipe or blueprint for successful debt management and Zambia needs to draw lessons from wherever there are best practices, which are relevant such as those of middle-income and low-income economies of the world.
Zambia is in better hands because President Banda as a qualified Economic Historian has a demonstrated understanding that some of the factors crucial to effective debt management include:
• Political commitment to sound debt management, especially adhering to legal and accountability frameworks, and commitment to building national capacity for debt management rather than relying on external consultants.
• A clear legal framework covering external and domestic debt, management of existing debt and new borrowing, and all issues surrounding contingent liabilities (of non-central government public institutions and the private sector), which is widely disseminated in order to provide protection for debt management officials against political pressures he has kept resisting.
All Zambians want and deserve is in the leadership of RB and his MMD team. The future of this country can never be on the utopia of 90 days nonsense. I challenge PF cadres to a sober and issue driven discourse on alternative leadership. Give us 10 reasons why Zambians should risk with utopia that tested progressive leadership. I have doubt that what i see in place will burn out this domestic debt soon. But i recommend for colossal capital well monitored and supervised expenditure on capital projects. Put up roads, schools, hospitals, power stations, irrigation dams and system, airports and rail ways across the country. Give a deafening silence to acts of aberrations calling on development freeze for 2 years. Such losers lack national interest. Leave them hallucinating without intrusion.
Senior Citizen.., Take a look at # 7 Digga..,., He’s sad it all in a single posting… Not you self praising rational actors ,writing paragraphs of cheap crap….. Absolute bull.sh.it .
# 16 meant say , ‘He’s said it all ‘
WFT, Just keep it simple imwe ma economists and financial advisers. A country needs wealth to develop. And jobs create wealth.
Give Zambian voters 10 reasons why they should risk with utopia than continue believing in tested progressive leadership of RB. Politically you have lamentably failed to build momentum and expendable capital. On economics and national development vision again you have failed to articulate a single line of value other than waffling we will renationalize the economy and make all cadres that can insult more money in the pocket in 90 days. How you will do that, its for ignorance to wallow in it.
The 1960’s type of economist this president is.
Look at the $600 US Million Zambia put itself into Debt last year.
Now its DEBT has climbed again.
More money in MMD pcokets.
The average joe is still chewing on local fruits to survive.
Is it mango season already!
Senoir Citizen , you are you really? Please come out! It seems you are part of the MMD CIRCLE and seem to be enjoying from their fruits. When everyone else is complaining about the current administration you are in the opposite direction! This is stranger than fiction!
RB calls for accountability
President Rupiah Banda has called for accountability in the management of funds for development projects.
The President says officers should ensure that funds allocated to projects are properly used.
President Banda says government is determined to ensure that it fully implements development projects.
He was speaking at State House in Lusaka on Thursday when he swore in Gladys Lundwe as Lands minister.
You M.O.R.O.N Mwata.
Do you think nobody reads Zambians news sites?
You are on a Zambian News site and still think nobody has read those boring MMD stories.
Mwata,Senior Citizen and Veteran.
Please come forward to accept your honorary plastic trophy for copy and pasting everyday non stop for over a year.
You have stamina and courage to keep up the charade that MMD is so good at running Zambia.
What are you going to do after 2011?
Mwata sucks white cock ,
Blogs are easy to start i advise you to start your own PF blog and see if you will ever survive a month or indeed attract 3 or 4 pundits at most. Insulting LT and these MMD pundits will not do you. Who is the owner of LT anyway? Do have the right to dictate to him? Untill we know who is behind LT and the agenda behind it, we are noise gongs in obscurity.PF has existed for over 10 years now why haven’t you their cadres come up with a PF blog. Other than Chola Mukanga who has tried one as a PF cadre, the rest of you are whimpers.No doubt MMD pundits know your challenges and got you frustrated.
Ba Jose for president, Iyo mwalanda bwino! no further comment.
Interesting arguments above.
Who is this $1.9bn debt owed to. Can someone give us a breakdown. Someone above mentioned expatriate consultants and the need to establish local expertise. Great. But highly skiled Zambians do leave the country for various reasons. Retaining these professionals within Zambia should be a priority.
#28 UK-ZED Observer. This is owd to people from all walks of life both Zambians (both me and you your NAPSA) and a pensioner sitting there in the UK that doesn’t even know that that’s where her pension contributions have been invested.. The figure $1.9billion is the current value of UNMATURED GOVERNMENT BONDS issued by Bank of Zambia on behalf of GRZ, time in memorial. (therefore represents money borrowed by GRZ but not yet paid back).. When Government needs money It can either (1) Raise it itself e.g Angola & Libya from owing some & controlling Oil resources- SONANGOL, Botswana from owning and controlling 50% of the shares of all DIamond Mining companies- Debeers Bots is owned 50:50 with gvt or (2) From Taxation-PAYE,DUTY,CORP TAX,VAT
#29– Continued.. Tax revenue is the top line of the national budget. so is budget all good but then why would GRZ needs to borrow.. to pay salaries becasue the Revenue has come in.. because in the first place your budged was to be FUNDED 50% by donors cause the cost of running and supporting govt way exceed the smal tax base UNDER1m already taxed to death at 35% like you and me.. so we are donor dependent and if donor does send money because of Corruption (RDA, MoH)GRZ needs to look elsewhere for money (3) BORROW from International Money markets in foreign currency if the can lend to you in the first place.. Not likely-corrupt, weak economic fundermentals not likely to repay … okay then .. (4) Bilateral partners .. nice friendly countries that feel sorry
#30- Controlled… feel sorry for the impoverished, depressing children faces they saw in Milanzi.. like that one that made us LT pipo breakdown in tears while RB flew out in gold new helicopter.. we call the donors but can only help u so much and will stop if we have KAPOKO & DORA issues continuing.. damn! Norway says they wont give me money.. hhm where to go? aha (55555555) Yippeeeeee!!!!!.. why don’t we borrow from Zambian through commercial banks within Zambia and in Kwacha.. The Central Bank will Issue the debts on our behalf and we will Guarantee.. vwala.. these are call GOvernment Bonds and Treasury Bills.. So Pension funds and otehr financial institutions are invited to lend on behalf of their clients (that include int’l Private funds) pensios , insurance r
#26 Ba Joze
A blog is a forum where people share ideas,argue,meet,express their opinions and gain knowledge and also learn,copying and pasting other peoples works,ideas and opinions is not blogging,that is simply plagiarism, and anyone who has been to a college will agree with me that it is unethical and imoral to copy other peoples ideas,its stealing.When blogging you post your ideas and expect someone to counter it with facts and figures
And the other thing,not everyone who is against mmd is a kaponya or a PACT cader,you would be suprised that most of the bloggers here are well learned and quiet advanced in their education to be labeled kaponya just because they are critical of mmd
In summary.. this is what GRZ owes for what ever reason PSBR (domestic borrowing Bonds & treasury Bills) $1.9billion
External Debt to Bilater Partners Levy & Magande left 0.7billion
New debt RB & Musokotwane have managed to borrow $2 billion
(China $1bilion, World Bank $600m, others $400m)
Total position $4.6 billion
Projected GDP $17 billion
Current Budget deficit excluding donor money 55%
Infrastructure development ZILCH (0)
No roads no bridges.. Where did the money go? Ur guess is as good as mine
Digga
^:)^ nuff said