by Diggers Reporter on 20 Oct 2018by Sipilisiwe Ncube on 20 Oct 2018by Mirriam Chabala on 19 Oct 2018by Joseph Mwenda on 19 Oct 2018
- Goal Diggers
by Alex Chilumbwe on 19 Oct 2018by Alex Chilumbwe on 19 Oct 2018by Alex Chilumbwe on 19 Oct 2018by Alex Chilumbwe on 19 Oct 2018
by Zondiwe Mbewe on 19 Oct 2018by Abraham Kalito on 19 Oct 2018by Stuart Lisulo on 18 Oct 2018by Abraham Kalito on 18 Oct 2018
by Zondiwe Mbewe on 18 Oct 2018by Zondiwe Mbewe on 18 Oct 2018by Zondiwe Mbewe on 17 Oct 2018by Zondiwe Mbewe on 17 Oct 2018
- Editor's Choice
by Chibamba Kanyama on 8 Oct 2018by WECREATE I ZAMBIA on 13 Sep 2018by Mukubesa Mundia on 27 Jul 2018by Percy Chanda, UPND on 15 Jun 2018
by Diggers Editor on 20 Oct 2018by Diggers Editor on 19 Oct 2018by Diggers Editor on 18 Oct 2018by Diggers Editor on 14 Oct 2018
by Zondiwe Mbewe on 28 Sep 2018by Tenson Mkhala on 28 Sep 2018by Thomas Mulenga on 24 Sep 2018by Sampa Kabwela on 8 Sep 2018
- Guest Diggers
by Diggers Correspondent on 17 Oct 2018by Diggers Correspondent on 17 Oct 2018by CUTS on 9 Oct 2018by CUTS on 2 Oct 2018
Mwanakatwe explains Eurobond interest paymentBy Sipilisiwe Ncube on 26 Feb 2018
Finance Minister Margarete Mwanakatwe last week explained to parliament how the three Eurobonds issued in 2012, 2014, and 2015 were utilized and how much interest is being paid on each per year.
Responding to a question from Kabompo UPND member of parliament Ambrose Lufuma, Mwanakatwe said government was compelled to withhold the US$1.25 billion in dollars in order to reduce exchange losses when making payments in foreign denominated currencies.
“Eurobond one, US750 million dollars. Mr speaker, as the members may recall, the first Eurobond amounting to 750 million was issued in 2012 to finance various infrastructure projects such as those in the road, energy and health sectors amongst others in order to accelerate development and improve the livelihoods of the Zambian people. During the period 2012 and 2013, government released 310 million to the road sector, 255 million to the energy sector whilst the railways sector received 120 million. Other releases were 29.4 million to the health sector and 20 million to recapitalize the Development Bank of Zambia,” Mwanakatwe explained.
“Eurobond number two, was US1 billion dollars. Mr Speaker, the second Eurobond amounting to one billion was issued in 2014 to mainly complete some of the outstanding projects so as to unlock further economic capital. Mr Speaker the bulk of these resources was channeled to infrastructure projects which accounted for K2.8 billion during the period 2014 and 2016. Notable expenditures under this category included K1.8 billion for road, K634 million for establishment of new districts and K123.8 million for the railway system. Mr Speaker sir, other sectors that benefited from bond included the energy sector at K955.7 million, education sector at K496.6 million, and the recapitalization of state owned enterprises at the cost of K480. 4 million. The remainder was shared amongst the sectors of health, agriculture, water and sanitation sector whilst part of it was used for general budget support as appropriated by parliament.”
She said due to volatility in Zambia’s domestic currency in 2015, government saw it prudent to hold part of the money from the third Eurobond in dollars in order to reduce exchange losses when making payments in foreign denominated currencies.
“Eurobond number three was US 1.25 billion Mr Speaker. The government in 2015 issued the third sovereign bond amounting to US$1.25 billion. Sir, it is important to mention that due to volatility in our domestic currency during that period, it was prudent to hold part of the money in dollars to reduce exchange losses when making payments in foreign denominated currencies. Mr Speaker nonetheless, releases were made to various sectors in an effort to foster economic growth and also ensure that liquidity was unlocked in the economy. Sir, the notable expenditures from this third bond were K2.6 billion to the agriculture sector, K3.3 billion to the energy sector, K2.2 billion to the road sector, K434 million to the health sector and K339 million to the education sector. The balance went to water and sanitation, construction of housing units for security wings, recapitalization of TAZARA, installation of navigation raiders, procurement of dredging equipment and general budget support as appropriated by parliament,” she said.
Meanwhile Mwanakatwe also gave a breakdown of how much interest is paid on each euro bond per year.
“In part two, how much interest is paid on each euro bond per year. Eurobond one, the principle amount US750 million dollars, the interest amount is US$40, 312, 500 million dollars. Eurobond two US1 billion dollars, the interest is 85 million per annum. Euro bond three 1.25 billion, the interest payment annually US$112,124,000 dollars. Government does not intend to default on the euro bond repayment. When the first, second, and third euro bonds for due in 2022, 2024, and 2025 to 2027 respectively. In order to deal with the refinancing risk posed by the maturing of the Eurobond between 2022 and 2027, government is proactively considering mechanisms aimed at redeeming the euro bond including implementing of a sinking fund,” Mwanakatwe said.
She also said the PF government had no apology to make to the Zambian people regarding debt contraction because it was meant to benefit the same people.
“This government makes no apology for the monies that it borrowed. It borrowed in 2012, the repayment starts in 2022. Zambia had been moved from a middle income country. The concession window was closing, we had to go international. We are making good use of this money. We heard the sectors articulated where this money has been spent. So Mr Speaker, I have no apology to make to the Zambian people because the Zambian people are going to benefit from us the PF government having borrowed this extent of Eurobond,” said Mwanakatwe.
About Sipilisiwe Ncube
Sipilisiwe Ncube is a Zambian journalist with a background in radio news.
Email: sipilisiwe [at] diggers [dot] news
- Decision to merge ZNBC with Star Times was made in public interest – CCPC - 20 Oct 2018
- Zambians won’t spare PF in 2021 – Musenge - 19 Oct 2018
- We can’t abandon borrowing now, allow Lungu to borrow more for the economy – Malozo - 19 Oct 2018
- Consult each other despite differences, Aka urges politicians - 18 Oct 2018
- We can only unify Zambia if we accept we have a President – Wynter - 18 Oct 2018
- Vespers' family breaks silence, question police investigations
- Get it right, Zambia has not refunded Britain the ‘stolen’ US$4.7 million
- Auditor General's report details how Social Cash Transfer money was squandered
- Attendance roll call at Day of Prayer annoys civil servants
- Chipolopolo's struggle to qualify worries Christopher Katongo
- Vespers’ family breaks silence, question police investigations
- Decision to merge ZNBC with Star Times was made in public interest – CCPC
- Get it right, Zambia has not refunded Britain the ‘stolen’ US$4.7 million
- News Diggers! ePaper Edition 289 Friday October 19, 2018
- Zambia has no leadership that can stop theft of govt funds – Mulongoti
Subscribe for email alerts
Weekly Most Digged
ArchivesNov0 PostsDec0 Posts
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
The News Diggers
Deputy News Editor
Plot No. Lus/9812/649-MC8
off Alex Chola Road
P.O. Box 32147
Telephone or WhatsApp:
+26-097-7708285, 095-3424603, 096-5815078
diggers [at] diggers [dot] news
editor [at] diggers [dot] news
Send this to a friend