Twelve [12] years AFTER the 2005 Paris Club Agreement and Six [6] years after bilateral minutes agreement, Brazil and Zambia have finally signed a US$ 90.7 million or 80% debt write-off.
Before the debt write-off was executed, Zambia owed the South American economic giant a consolidated amount of US$ 113. 4 million of which 80% has NOW been written off , and US$ 22.7 million or 20% rescheduled for repayment in two equal instalments to be paid by March, 2018.
According to the statement released to the media and signed by Chileshe Kandeta, the debt write-off and rescheduling agreement was signed in Brasilia between the Brazilian Secretary for International Affairs, who is also the Vice Minister of Finance, Dr. MARCELLO ESTEVAO, and Zambia’s Minister of Finance, FELIX MUTATI.
Speaking after the signing ceremony held at the Brazilian Ministry of Finance Headquarters, Mr. Mutati said the savings from what would have been full debt repayment will be channeled to support the implementation of poverty reduction programmes outlined in the Seventh National Development Plan [7NDP].
“We are very grateful to Brazil for concluding a process that started way back in 2005,” he stated, adding that, “this agreement will reinforce the relationship between Brazil and Zambia.”
He affirmed that the agreement signified the commencement of a revolution which will lead to thriving development cooperation between the two countries.
“I take this opportunity to reiterate our commitment to execution of the Economic Stabilisation and Growth Programme through which the Zambian Government, under the stewardship of President Edgar Chagwa Lungu, has implemented measures to stimulate enhanced economic growth; sustain the fiscal consolidation process; and, promote financial discipline across all domains of the public service,” stated Mr. Mutati.
Minister Mutati restated Zambia’s keenness in tapping into the world-class competencies of Brazil in agriculture development through private sector driven mechanization and technological transfer initiatives.
AND Dr. Estevao says the parties’ debt write-off and debt rescheduling agreement is a great start to a new phase of development cooperation between Brazil and Zambia.
Dr. Estevao stated that after suffering stagnation, his country was now undertaking structural reforms which have redirected the Brazilian economy to a recovery path with growth projected at 3%, adding that, “this is a good time to sign the agreement and heighten the relationship between the two countries.”
Brazil is at the frontier of technological advancement in the agriculture chain, therefore, “it makes a lot of sence to collaborate in order to boost Zambia’s diversification process,” Dr. Estevao assured Mr. Mutati.
MEANWHILE, the Brazilian Secretary for International Affairs has said his country backs Zambia in her quest to get on an IMF Programme because of the importance that investors, and both bilateral and multilateral cooperating partners attach to endorsements by the IMF through a programme.
Dr. Estevao, a former IMF official who until 2016 served as an economist, researcher, and IMF Mission Chief for various countries for a period spanning over twenty [20] years, told Mr. Mutati and his delegation that “Brazil will support Zambia when the presentation is made at the IMF.”
MEANWHILE, the Brazilian Secretary for International Affairs has said his country backs Zambia in her quest to get on an IMF Programme because of the importance that investors, and both bilateral and multilateral cooperating partners attach to endorsements by the IMF through a programme.
kikikikiki. Does PF think the same? They call IMF colonialists and Edgar arrogantly tells them to pack their bags and leave.
1 step forward and then we will take 100 step backwards by borrowing Billions from China and India.
On the other hand, this debt write-off does not make much of a difference if you consider the debt we have…about USD20 Billion and still borrowing.
Is mutati, minister of finance or minister of debts?? ,,, everything the guy is doing is about debt begging and pleading… ,,, I thought ministry of finance should be have much bigger responsibilities than just,, debt begging and borrowing!!!
The only debt that PF minions and Zambians should worry about is the Eurobond which can not be written off apart from borrowing money from IMF to pay it off.
The only solution here is to ask PF minions to contribute towards paying the interest charges accrued by the Eurobond. If PF fails to honour its interest payment then credit rating for Zambia will relegated to super junk status close to Zimbabwe.
With PF in power under chakolwa Lungu Zambia is doomed. How on earth do you expect a constantly drunk person make good decisions about Zambia ‘s economy? Its an open secret that drunken state impairs your thinking.
If only we could learning our lessons, and start getting ashamed of our lack of fiscal discipline.
@Ndobo, What was that $113 million for in that debt in the first place?
I dont trust what PF says. The truth I think is 80% of the debt has been rescheduled and not written off. All this LT writing is just spin to make Mutati and PF appear to be taking action on debt when in fact nothing has been achieved apart from postponing the debt repayment.
How earth on can a country like Brazil write off a huge debt when its economy is struggling and majority of its people have no decent shelter nor employment.
Zambians need to think and think very hard about PF and LT s lies. Only the developed countries can write off debt and thats only after having paid interest more than the principal amount borrowed.
I have always said what ever PF says the direct opposite is absolutely true.
No shame at all with these fooools yet they have $42m to wast on overpriced trucks..but cant pay back $90m
Imagine you forgive your neighbor for a debt he has failed to pay because he takes his money to drinking, how would you perceive your neighbor; a fool right?
Why do they say that debt is ‘written off?’ It is sold to someone else who is willing to get lower payments for it because the lender has already recouped the principal.
Just look at Brazil and i will show you an example of racial cleansing…not a single Black person in the frame or on their adverts!!
Jay Jay, your eye is too sharp. In years gone by, you could have made a good hunter.
In years gone by, being a good hunter meant, you could marry the Kind’s daughter, or be so eminently regarded by society.
The PF thugs will soon go for another loan from some hidden loan shark equal to the amount written off by Brazil. These people are so wield in their mindset!
Even 20 times larger
Written off in their books, and yet still bleeding, requiring ICU care and incubation in ours! That’s corruption, the PF style.
I wonder under what conditions this debt is written off! A country cannot just write-off such a huge debt without strings attached. Next we will hear that Euro-bond has been written off! Under what conditions?
The debt hasn’t been written off, it has just been passed onto someone else. The Euro-bond cannot be written off, as that’s a government guarantee, which has to be paid. They can delay but no writ-off!!
I knew it was a begging bowl trip ,only that this time its debt forgiveness.Can GRZ now use the savings to fix roads in Misisi or the dilapilated schools in Mongu?
We should be ashamed that in this modern age, all we know is to move with a begging bow from country to country. Brazil has realized the pain and hunger that people of this country will be subjected to should they accept the US90million. When are we going to learn to be frugal and prudent in the management of our resources? It actually makes sad reading that our Finance minister should be celebrating this forgiveness knowing full well that this money will be plundered with impunity. PF please go before you annihilate all of us with you reckless macro economic gibberish.
With all the lies Mutati has told us about IMF I didn’t buy this story. It may be a cooked story just to cover up what he actually went to do in Brazil which is asking to borrow money from the Brazilian Development Bank.
GRZ will continue paying that write off to some invisible account!!
Who writes off a debt that big. Stop lying to your selves and the people of Zambia. Mutati is making big bucks. Without being too analytical, the Brazilians need that money just as much as we do. I hope he visited the Favelas (shanty compounds) of Brazil-which are 100 times worse than Zambia’s before he flashed that smile of his.
Brazil could have used that money to improve a bit on those favellas. Those shanties in mountain ranges.
They found it fit to forgo their benefit for the sake of poorer Zambians. Incredible that almost 50% that amount can be pocketed by politicians in Zambia by short-changing citizens in the infamous procurements.
Mr. Lungu would go 100 steps ahead and the oppositions would pull him 97 steps backward. The resultant progress is 3 steps. That is the development we are witnessing today.
Was it the opposition that sanctioned spending $1million on a $280K truck , 42 times ??
Is writting off debt something to be proud of surely??
Sit down on the floor and wake up from your stupor!!
ya ok than deport all brazilian for no reson from zambia like that jewish
This country has been borrowing since time immemorial, before you completely condemn the current government when was that debit obtained and for what purpose? Vote GBM during congress, Vote GBM under UPND ticket 2021. “Bola panshi GBM nishimbi”
We condemn the present government for its own sins, not for the sins of previous governments. If the present government had a conscience, it wouldn’t have restrained itself in the manner it has borrowed – here, the truism of an old adage: Once beaten, twice shy! To the contrary, this PF government has shown not a trace of shyness. It has gone naked-out and flat-out in desperate search for debt.
Thats good. What is the catch?
Iwe chimbwi, nothing good about this crap, learn to have shame, infact, there are hidden agenda that screws Zambia in the long run, but people who are clueless like you are yapping that this is good.
Beggars with no shame at all and that after 53 years of independence and self rule!!! Unbelievable and there are those of you who cannot even say, thank you.
And now you are proud? Shame on you….feel sorry for Zambia.
The only ever president mwanawasa won this debt relief way back in 2005… hiw I wish we coukd have another if his kind… RIP great one!
… .The only ever prudent president…. Mwanawasa
Just when are we ever going to grow up and learn to live within our means and stop bequeathing future generations with debt? It’s sad really to be ruled by *****s whose only virtue is butole bwabu natolelefye!
Winangu has developed diarrhea with his crew in the donkis department.
We proud that no donki will ever rule Zambia.
Instead, convicted embezzler and Endemically Corrupt Leader and his Plunderers Federation are making great strides towards total destruction of the Country!!!
I prefer “donki” any time that wise, humble, anointed and Endemically Corrupt Leader
@20 Victor,
Of course you’re happy to be ruled by Kolwe No Plan first and now Jameson Koswe Mumpoto as the successor. And when people call you animals in an animal farm you get annoyed! Awe sure ndimwe nyama za mushatini basuntwe myebo mwaka sondoka pe!
Lets go a Levy Mwanawasa way. We need to learn to live within our means.
Thumbs up Minister a this score.
Sata, Chikwanda and Miles speared headed the EUROBOND but surprising people are blaming Lungu today.