PF borrows $350M from local banks to strengthen Kwacha

The reckless PF regime borrowed more than US $350 million from Barclays and Stanbic Banks in a temporary move meant to cushion the Kwacha

Highly placed sources revealed the US $300 million was syndicated by the two banks and later money sent to Bank of Zambia in the last one month.

But the trick thing now is that Bank of Zambia has been releasing between US$ 10 million and US $20 million euros every week to the same banks to cushion the falling Kwacha.

But what the move now means is that the Zambian government borrowed at very high interest rates, given the money to the banks to offload to the market but the market are sweeping away the same money.

This is another move that will cost the treasury more money in future as the loans will have to be paid not long from now but not supported by any production as the key forex earners in the mining industry are closing.

In short the Zambian government is incuring huge losses with such temporary moves and will even lead to further loss of investor confidence.

The Zambian currency exchange rate rebound in the last one week but what the people were not being told was that it was just their own borrowed resources from local banks at high interest rates.

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