IMF fear forces Zambia to disclose true debt: external $ 17 b, local K38 b

The PF regime has finally been forced to disclose Zambia’s actual debt after 6 years of concealing.
Finance Minister Felix Mutati disclosed the shocking statistics in parliament Wednesday afternoon when he said that Zambia’s external debt alone is US $ 17.2 billion. The domestic debt is now 38.6 billion. Remember that Zambia’s Gross Domestic Product (GDP) is only USD 20.9 billion (2017, World Bank estimate).

“Mr Speaker, Zambia’s external debt stock as at the end of May 2017 increased to US $ 17.2 billion from US $ 6.9 billion in December 2016. The increase on stock was on account of new disbursements,’ Mutati said.

Which disbursement can amount to US$11 Billion within five months?

He said the domestic debt stock was 38.6 billion in May 2017 compared to 33 billion in December 2016,” Mutati told PF MPs who assembled and called themselves a parliament.

Is Mutati being truthful? How possible is it that the country acquired US$11 billion worth of external loans from December 2016 to May 2017, just within five months?

When Mutati presented the 2017 budget last year, he said:

‘Mr. Speaker, the stock of Government’s external debt as at end September 2016 was US$6.7 billion, representing 35 percent of GDP. The stock of domestic debt in the form of Government securities was K26.0 billion, representing 12 percent of GDP. Clearly, we are walking a tight rope. We therefore, have the responsibility to ensure debt sustainability. We must not burden the next generation with debt.’

Is it not possible that the IMF has threatened Mutati that it would not give Zambia bailout if the regime does not disclose the true debt?

How will the IMF receive this new revelation since Mutati has been telling them that Zambia’s external debt is only US $ 6.9 billion?

Remember the IMF cancelled a bailout to Mozambique after discovering that the Mozambicans have been concealing the country’s actual debt?

Why did Mutati suddenly decide to address parliament and make such a staggering announcement?

When did the Zambian minister of Finance start giving a state of the economy address?

SOMETHING IS NOT RIGHT SOMEWHERE?

The Watchdog has always been telling you that the PF is lying, Zambia’s debt is close to $20 billion. Do you still want to argue?

And for the first time, the regime through Mutati gave the true poor performance of the economy under Lungu.

The minister said the fiscal performance in the first five months of 2017 was challenging.
“Revenue underperformed by 10 per cent compared to budget. This underperformance on revenue has been on account of lower tax compliance by tax payers and delayed implementation of budget measures such as land titling, installation of fiscal devices to improve VAT collection, implementation of electronic equipment in the communication sector to improve the performance of excise duty and the introduction of a single window at entry points to reduce the turnaround times at borders and boost revenues,” said Mutati.

“Revenue underperformed by 10 per cent compared to budget. This underperformance on revenue has been on account of lower tax compliance by tax payers and delayed implementation of budget measures such as land titling, installation of fiscal devices to improve VAT collection, implementation of electronic equipment in the communication sector to improve the performance of excise duty and the introduction of a single window at entry points to reduce the turnaround times at borders and boost revenues,” said Mutati.

He said although the country had made tremendous social and economic progress, risks remained high on the external side.
“Based on the need to support the external side, increase market confidence, enhance investment flows and to leverage more resources of cooperating partners, government has engaged the IMF on a possible programme. In this regard, Mr Speaker, we hosted the IMF in discussion from the 29th of May to the 10th of June. Mr Speaker, during these meetings, the government and the Fund agreed on the remaining actions needed to reach a staff level agreement on a programme that could be supported under the IMF’s Extended Credit Facility. With the required actions agreed to have the programme presented to the board in August 2017,” said Mutati.
“Mr Speaker, let me take this opportunity to emphasise that the position with regards to where we’re in our discussion, the major issues required to be addressed for us to proceed to the conclusion, mainly relate to higher than projected budget deficits, accumulation of arrears and increased debt levels.”
The minister said key policy structural measures aimed at mitigating the above challenges include reforms in the energy and agricultural sectors.
“Further, recognising the reforms may have adverse effect on vulnerable members of our society. I did state Mr Speaker, that government will scale-up the social protection programmes, in additional to increased resources that government has committed to the programme. Our cooperating partners have also augmented these resources for social protection,” he said.
On the state of the economy, Mutati said “the economic performance has rebound with inflation down to single digit, the exchange rate remaining largely stable and the GDP starting to recover”.

COMMENTS

WORDPRESS: 18
  • comment-avatar
    Njangwamuloty 5 months

    President Lungu was on a tour of Chainama new wing and asks a Doctor: How do you determine whether to admit a mental patient or not to?
    Dr: “Well, we fill a bathtub with water and then give the patient;
    (a). a teaspoon,
    (b). a glass,
    (c). a bucket,
    and ask them to empty the bathtub.”
    Chagwa: “Oh, obviously a normal person would use the bucket because its bigger.”
    Dr: “No, a normal person would pull the drain plug! Please go to bed No.39. We will start further investigations on you!”
    ………………………………….
    😀😀 You also thought of the bucket, didn’t you? Please go to bed No. 40 ! 😝
    Forward quickly… There are still some beds available !!!

  • comment-avatar
    Njangwamuloty 5 months

    Good. Let Zambians now eat the consequences of their stupidity! You can’t engage monkeys to guard a field of maize and expect a harvest at the end of the season, never! Yours is a failed state, period! The sooner North-Western, Barotseland, Central and Southern secede from you baboons the better. One can’t live with these vile animals, like Levy said, they stink!

  • comment-avatar
    Kalikeka 5 months

    Could it be that the Greedy, money-clueless PF cadres plan to get their filthy hands on HH’s and GBM’s money?

  • comment-avatar
    Pf cadrr 5 months

    Misuse of country resources. If they can spend K5M on a Catholic bishop with Eastern name just rebut T.Mpundu what do you expect?

  • comment-avatar

    This is why the POST News paper was closed and now HH must be silenced. But some Zambians are still worshipping the mismanagement of national resources and are being bought to support irresponsibility using the same moneys. Where can one say the moneys not even Dr Kenneth Kaunda used in 27yrs have gone to? SHAME

  • comment-avatar
    Moya 5 months

    Zambia is Bankrupt and that is why Lungu is persecuting HH. If a New Govt to power the rot in the PF Govt would be exposed. The PF govt has falsified the External Debt from the time of former Minister of Finance Alex Chikwanda. There is no way Mutati could have contracted a Debt of $10.2 Billion in 6 months.A Commission of Inquiry must be established to investigate how the Zambian Debt has accumulated to the staggering figure of $17.2 Billion. Mutati should give a Breakdown of this Debt so that we know how these figures were arrived at. Those who stole money from the Treasury should be made to account.These people have committed Financial Genocide against the People of Zambia and must be punished.

  • comment-avatar
    Chibwe 5 months

    This means Zambia is bankrupt.With a staggering debt of $17.2 billion Zambia no longer has capacity to contract more Loans from IMF and other Creditors.How did the debt rise by $11 billion in 5 months? What did the govt use this money for? Well the visionless Lungu rigged the 2016 Elections but he can’t rig the Zambian Economy.Bribing one IMF Official will not convince the IMF Board to lend some more money to a bankrupt country with Gross violations of Human Rights,Poor Governance,No respect for Rule of Law and the Zambian Constitution. With no IMF Loan, Western Financial Assistance and Foreign investments the Zambian Economy will virtually collapse with dire consequences on the People and the illegitimate Lungu Regime.

    • comment-avatar
      Musa 5 months

      Zambia will definitely default on its foreign debt when Eurobonds mature next year. Without the IMF Loan Zambia cannot re-finance this debt. So Zambia in now a basket case and a Failed Police State. Lungu rigged the 2016 Elections but he can’t rig the Zambian Economy without a Vision.Zambians better brace up for tough times ahead under Dictator Lungu.

  • comment-avatar
    Njala 5 months

    I feel sorry for our grandchildren. As for me my Family investment will last generations. Now its up to us to help ourselves,otherwise

  • comment-avatar
    Buck Teeth Lungu 5 months

    No wonder PF and Lungu did not want UPND in Parliament during this time! Surely if there is treason then this is it. Spending beyond the statutory budget and borrowing beyond what Parliament has been told is the real treason. Dilma Roussef in Brazil was impeached for misreporting and hiding national expenditures.

  • comment-avatar
    Buck Teeth Lungu 5 months

    The reality was starting us in the face all the time. New high powered jets buzzing Zambians just over trees. New armoured military trucks. New body armour, balaclavas and well fed dogs for the PF militia. All those were preparations by Lungu for his protection when one day Zambians realise that the country is bankrupt all over.

    • comment-avatar
      Buck Teeth Lungu 5 months

      …. staring us…

  • comment-avatar
    Buck Teeth Lungu 5 months

    Zambia is truly bankrupt and fucked under PF.

  • comment-avatar
    Buck Teeth Lungu 5 months

    Even if you want to be generous and say that this $22 billion was stolen over 7 years of PF, that’s a colossal amount. UNIP managed to bankrupt Zambia with $6 billion debt over 27 years. PF did it at 4 times the scale in a quarter of the time. What a record! Phew!

  • comment-avatar
    cynic 5 months

    What a nightmare! LPM’s predictions coming true.

  • comment-avatar
    Buck Teeth Lungu 5 months

    No wonder Lungu wants to kill HH because there will be no money from IMF and no more largesse to give to voters to stressful elections. 2021 is a desperate gamble for Lungu. That’s why he does not want a strong opponent like HH who will expose him.

    • comment-avatar
      Buck Teeth Lungu 5 months

      ..to steal elections.

  • comment-avatar
    webman 5 months

    Simply put, music to my ears,,, make the bed you sleep in it Zambians! Kill HH if you like, it won’t change or make this debt disappear!!