The PF government still does not seem to know what do with the money it is borrowing from individuals and small companies under the Euro bond.
And the PF has finally clearly explianed that the Eurobond money is a loan that Zambia will repay with interest after 10 years.
Typical of the PF cahotic way of running the country, each minister just communicates to the media whatever ‘smart’ idea he has just thought about.
Now Miles Sampa says government would consider lending the US$750 million Eurobond to Commercial banks on short-term basis.
Sampa told one of the newspapers controlled by PF that government would consider lending it out to commercial banks which would then lend the money to other companies for a period of six months to one-and-a-half years.
He said Government wanted to ensure that the money did not sit idle, hence the need to consider lending to commercial banks.
This is how the PF runs the country. There are no cabinet meetings and each minister is expected to guess what to do.
And Sampa has finally clearly explained the money was a loan which has been given to Zambia for a period of 10 years and Zambia was expected to start paying after 10 years at 5.5 per cent.
“To ensure that the money does not sit idle, we will consider lending it out to commercial banks which will in turn give to other companies for a period between six months and one-and-a-half years on short term,” Mr Sampa said.
He said government expected that the Eurobond would boost Zambia’s economy and create jobs for the benefit of ordinary Zambians.
The 10-year Eurobond attracted more than 450 investors across the globe, with US investors leading at 56 per cent, followed by Europe-based investors at 40 per cent, three per cent from Asia, while one per cent was made up of investors from different countries.
But more infomatioon coming out show that the so called investors are just individuals who do not care whether their is dcemocracy or not in Zambia as long as they will get thier profit after 10 years.
According to information gathered by the Watchdog, some of the individuals buying part of the bond have never even heard of Zambia but have been convinced that after 10 years, the country Zambia will pay them back with interest.
The selling of the Euro bond therefore does not show confidence in the country’s economy but that as long as there is a country called Zambia, that country will pay back no matter who will be in power.
Investors who have confidence in a country pump their money in such a coutry by creating industries then they make profit.