The Zambian government has confirmed that the African Development Bank l has imposed sanctions on the country for failure to service loans, but assured that the nation not to panic as the payments are being processed and will be finalized as soon as possible.
In a statement released to the media, the Ministry of Finance said that it has started processing payment of $ 1.4 Million United States dollars in loan repayment to the African Development Bank.
The Ministry said that the delays in settlement of the bill was due to the sudden depreciation of the kwacha which increased the volume of the Kwacha needed to settle the amount.
The Ministry has further stressed that it must be understood that the government budget is always in kwacha.
The Statement further said that any sudden and significant adjustment in the exchange rate, the ministry of Finance may experience challenges in meeting obligations payable in foreign currency and that this was normal and may occur from time to time.
The government has since assured the nation and all stakeholders that the situation is under control and is not as portrayed on social media.
Government has also acknowledged that the African Development Bank did write to its Ministry of Finance yesterday to inform them that as of yesterday, that the bank had NOT received full payment in respect of the bank group bills.
On 15th December 2019, the African Development Bank in accordance with its policy on loan arrears recovery informed the government that it imposed sanctions on Zambia.
The bank stated that it counted on the government’s prompt action for the timely settlement of the amounts due to enabling the lifting of sanctions.
The Government has since informed the nation that information circulating on social media to the effect that African Development Bank has put ZAMBIA under sanctions for failure to repay loans should NOT cause any panic.
Below is the statement
PF cadres, led by Ephrime Shakafuswa, Kellys Kaunda were this morning busy rubbishing this story as fake. It shows you the fake people are in PF and the rest normal minds are outside.
Now wait a minute…when HH was warning you about the escalation of debt you called him “bitter” and “under five”. Ala mule sumina bane. This is just the beginning. Can’t wait for HH and UPND to move in and restore order in Zambia. 2021 is too far.
Bwalya Ng’andu deserves appreciation for ensuring that the truth was not hidden from Zambians. Would this hv come out under Margaret Mwanakatwe? I doubt it, not whn she kept on saying that there was no fiscal crisis in Zambia.
Twasanswa no buchushi Nomba. We wont receive any aid because of slave Master Foote and no loans because we borrowed as if God was our surety. Then the Christian nation is faced with a devastating drought causing un precedented loadshedding. Tulamyeba. Build capacity in yourself
This letter is fake. it is not coherent and above all its not signed. meaning it is generated by the opposition. Soon the people you are trying to woo or rather fool will get to know the truth and you will lose again in 2021. Opposition you dismay or rather surprise me. there are so many things that you need to bring out to discredit the current party in power but opposition always chose to lie. Am sure you are not yet ready to rule.
Amazing that the default has started already. As long as the people of Zambia put their voices below mute nothing concrete will be done by this government.
You still need to rule?
This is just the beginning, the bigger loan repayment are coming
Bad new it is a sign of what .let the one with ears haer and the one with eyes see how tatanic in sinking the big Boat
This should not have happened in the first place. We should not be finding ourselves in this groping of Somalia, Zimbabwe and others. We are a nation of Mukula, copper, cobalt, gold , emerald exporters just to mention a few and $1.4m is just petty cash. Are these signs that we are now a bankrupt country? Please manage this country well. It belongs to us all. Do not create too many problems for us. Already you have seriously boobed on this American debacle-cadres, Malanji, Dora and the President all getting involved! It was unnecessary. Should have just kept quiet.
Too late
How much is owed to AFDB?
Now the chickens of reckless borrowing and huge theft of money from loans is coming home to roost!
These PF thieves have been stealing for so long they think it is NORMAL!
But when it is time to repay they will be missing! Enjoying the proceeds of their crimes in other countries where they have stashed their loot!
How is your housebuilding in eSwatini going Mr Lungu?
Most of the loans were signed in 2016 during the election campaigns empowerment loans look where it has got us? Money was diverted in pockets
When HH opens his mouth , you call him bitter ??
Kudos , citizen , malinso where are you ?
Spaka chipuba, $1.4m should put a country under pressure??? Small misunderstanding being sorted out. Ka U5 kobe is sabailaring for nothing. PF is in charge!!!
“…. $1.4m should put a country under pressure???…”
Look how greedy you PF are , that $1.4 million is small change from what lungu or tasila or any of lungus gang have stolen ….
Now even making the country be grouped with Somalia ?????
Ati “small understanding ”
That’s what all white collar thieves say…..
“…. $1.4m should put a country under pressure???…”
Look how gree.dy you PF are , that $1.4 million is small change from what lungu or tas.ila or any of lungus gang have stolen ….
Now even making the country be grouped with Somalia ?????
Ati “small understanding ”
That’s what all white collar thieves say…..
Look at this rat ,
He does not understand credit worthiness or affects on credit ratings a default has…
As long as they loot , they don’t give a darn……
zed citizen if you are struggling to paying ka 1.4 dollars what more chi 500 dollars from china? Politics aside PF has failed…just come back to reality and face the truth.
“…. $1.4m should put a country under pressure ”
Now even making the country be grouped with Somalia ?????
Ati “small understanding ”
That’s what all white collar thieves say…..
“…. $1.4m should put a country under pressure?
LT
check your restrictor , you are un necessarly blocking comments , are we not allowed to air our views even when we are not insulting ???
Donchi worry, NO LOSS FOR ZAMBIA as Jon@ Wabantu was using the cash to fence off a Mukula rich forest for his equally long fingered Daughter T@s!la Wabantu in Sinda, ask Panji K.K. he’s complained to the useless inept A.C.C, & woeful Jean the Mukula Baptist.
I NOW BELIEVE THE 51 MYSTERIOUS HOUSES BELONG TO T@S!LA WABANTU!!
Donchi worry, NO LOSS FOR ZAMBIA as Jon@ Wabantu was using the cash to fence off a Mukula rich forest for his equally long fingered Daughter T@s!la Wabantu in Sinda, ask Panji K.K. he’s complained to the useless inept A.C.C, & woeful Jean the Mukula Baptist.
I NOW BELIEVE THE 51 MYSTERIOUS HOUSES BELONG TO T@S!LA WABANTU!!
Donchi worry, NO LOSS FOR ZAMBIA as Jon@ Wabantu was using the cash to fence off a Mukula rich forest for his equally long fingered Daughter T@s!la Wabantu in Sinda, ask Panji K.K. he’s complained to the useless inept A.C.C, & woeful Jean the Mukula Baptist.
I NOW BELIEVE THE 51 MYSTERIOUS HOUSES BELONG TO T@S!LA WABANTU!!
Donchi worry, NO LOSS FOR ZAMBIA as Jon@ Wab@ntu was using the cash to fence off a Mukul@ rich forest for his equally long fingered Daughter T@s!la Wab@ntu in Sinda, ask P@nji K.K. he’s complained to the us3less inept A.C.C, & woeful Je@n the Mukula Baptist.
I NOW BELIEVE THE 51 MYSTERIOUS HOUSES BELONG TO T@S!LA WABANTU!!
Apologies for multiple duplicate comments, this is due to the P.F paid, & aligned L.T trying their level best to restrict comments critical of their d!rty Corrupt paymasters.
TO L.T, THE BELLY & FAT CORRUPT WALLET TALKS!
Edgar lungu has hint 2021 to 2026 compagn while others you want to change government.The government is comfortable even though they have failed to run it and I see blood shed to remove PF government,it is like they have got no other things that they can do outside government.
There is both a technical and a policy indication in the circular. In one we have had an explanation on what happens when payments are being prepared; so there is a rush for hard currency to meet repayments. The second and most significant is that we are all being prepared for more of the same. Default will soon be a friendly term. It MAY occur from time to time. In straight language it WILL happen again and again.
Uko!! If you think this load shedding from 5am to 10pm is worse then brace yourself for 35 hours in a day loading shedding. Contracting loans without a plan of how you repay is called HNP (Hyena No Plan). The damage this govt has done within a short space of time is unprecedented and hope this serves as food for carefull thinking next time you vote.
“The Ministry has further stressed that it must be understood that the government budget is always in kwacha”.
IF THE GOVT’S BUDGET IS ALWAYS IN KWACHA, WHY WERE THE FIRE TENDERS PRICE STATED AS U$1 000 000 EACH INSTEAD OF ITS KWACHA EQUIVALENT? OR THE PRICE OF AN AMBULANCE STATED AS U$288 000 EACH INSTEAD OF ITS KWACHA EQUIVALENT?
THIS IS CRIMINAL CUNNING BECAUSE THE PF WANTS THE FIGURES TO APPEAR RELATIVELY SMALL TO AVOID DETECTION OF THEIR THIEVING. THAT IS WHY THE COST PER KM OF A ROAD IN ZAMBIA U$1 000 000 INSTEAD OF U$475 000. BE SINCERE!!!
They borrowed the money and never put it to productive use instead someone used the money to buy off Chimtengo Forest Reserve in Sinda while people are busy talking about forest reserve 27 in Lusaka. Zambians wake up forests are going into private hands while muli ndwiii. People in Sinda have nowhere to get firewood
Ndipo tilimuchibe! God alone help us.
How can ‘whole’ economists simply state that the “the government budget is always in kwacha” when they borrowed in dollars? When you borrow don’t you anticipate fluctuations in the rate? This should not be an excuse. It merely means you can’t pay because your economy is not performing. You are not making enough or it’s being misappropriated.
That is why we have thieving Bulldozer distributing free things to the needy because all the money has lined their pockets and ended up on some building site in Swaziland or forest 27 .What is the latest story about the two mansions owned by Lungu and chanda ?We Zambians forget too easily .Now that it is Christmas we need to remind ourselves rest we forget about it .
We said, please don’t borrow too much, Mr Chikwanda and Madame Mwanakatwe.
Answer………ati ……’sustainable.
Okay we are not panicking…….but it’s not a message to ring the new year in with.
$1.4m for a country we are in problems, let us get ready for 2020 things will be worse. That’s the kind of money the president spends when is on a state visit and in days, and we fail to settle loan interest. Mr Lungu if u really care about this country avoid trips in 2020 they are costly even the local project inspection programs are equally expensive. Please reduce
“The Ministry said that the delays in settlement of the bill was due to the sudden depreciation of the kwacha which increased the volume of the Kwacha needed to settle the amount.”
This is correct: The runaway kwacha against the dollar is making the debt servicing very very expensive indeed. In short all our debts are now doubled or tripled making us poorer and poorer by the day. In 3 years time we shall be declared bankrupt and forced into receivership.
Disaster!!!
Kwacha was K3.5 to the US Dollar before Lungu and his PF hijacked the Government Budget.