By a citizen
In the less than 3 year the PF government has contracted a lot of loans many of them secretly from China. Over which they have threatened to arrest those exposing such loans. A few days ago they borrowed US$1.25 billion out of the US$2.0 billion they wanted to borrow. The interest rate on $1.25 billion is 9.375 percent. Even the mismanaged Greece borrowed from the International Monetary Fund a loan of 3.5 percent and from the European Union/European Central Bank at 2.1 percent. Its time PF hired the Greek to help in negotiating for lower interest rates. No country has so far borrowed Eurobonds on interest rates higher than 8.0 percent apart from Zambia. It is no wonder that the Greek opposition leaders told Prime Minister Tspira that they would not allow him to make Greece like Zambia.
For its debut bond in 2012, Zambia paid an interest rate of 5.375 percent for the $750 million loan, a year later the country borrows $1.0 billion at 8.625 percent and within a short period you borrow $1.25 billion at 9.375 percent. (You are trying to spin that the coupon is 8.97 percent for 11 years – it is ten years bwana the Eurobond). Each time you borrow the interest rate on your kaloba is increasing and your patronize your President by telling him that each time you borrow the owners of the money are increasing the amount they expect to pay because they have confidence in your governance. Yes they have confidence that you have no capacity to understand anything and you are desperate you will pay the shylock an extra pound of fresh. Deputy Minister Mvunga you are a trained banker stop patronizing and insulting the intelligence of your boss he knows that that is a sign of loss of confidence. This is the proverbial – the Emperor is naked.
The $3.0 billion PF has borrowed, as a country by the time Zambia finishes repaying the loan it will have to repay a total of $5.475 billion in principal and interest. In addition, a total of $97.0 million has so been paid to those arranging the loans. Who knows which other pockets have more money. For a bloated cabinet, salaries and other consumption based expenditures Zambia owes $6.4 billion on just three loans. More money for the American and European Investment Bankers – this is Economic Slavery courtesy of visionless leadership. Come out in the open and tell us the actual debt for Zambia, which is slightly above $12.0 billion. Not even Kaunda beat that record in 27 years.