PF has contracted record debt

No single party including the Patriotic Front (PF) will find it easily to garner the 42% votes to win the 2016 general elections, MMD president Nevers Mumba has said.

Speaking in Solwezi yesterday, Dr Mumba said elections statistics were a challenge to all the parties and the determinant element that might give any party advantage or favour would be good and realistic campaign promises.

“The three major parties, PF, UPND and MMD would face the realities of statistical stacking that will prove to be a challenge, but certainly surmountable,” he said.

Dr Mumba also blamed the PF of reckless borrowing which would leave the country with the highest debt ever, of US $11 billion, which would be difficult to amortize.

He explained that unless the money was invested in productive sectors, it would be difficult to find the capital and interest to repay.

Earlier, MMD director of communications, Muhabi Lungu observed that the recent obtained US$ 1 billion Euro-Bond had pushed the country’s foreign or external debt to US$D4.5 billion, adding that the country was borrowing about US$D 1.5 billion from the domestic lending market.

He said the development would make Zambia’s debt situation completely unsustainable.

Muhabi  said that it was immoral and irresponsible for the PF government to continue borrowing above the country’s Gross Domestic Product (GDP) which still stands at about US$D 25 billion, adding that the country was getting into a debt crisis.

“Our debt situation is becoming unsustainable and if you look at the country’s economic report of last year, the external debt is at US$D3.5 billion, and if you look at the Bank of Zambia first quarter report states that the total amount of domestic borrowing is K20.7 billion and if converted will give you another US$D3.5 billion bringing the total debt to US$D7 billion which the country has as at now,” said Muhabi.He said that it was clear that by end of October, the nation would have accumulated about K10 billion in debt borrowed locally.“By the end of the year both local and external debts would be about US$D11 billion which is unsustainable because it was above half of our equity of the country’s GDP which stands at US$D 25billion according to the current CSO statistics which they are now using,” said Muhabi.Muhabi has since challenged the Minister of Finance Alexander Chikwanda to refute the figure and the debt crisis of US$D11 billion they have put the country.

Categorized | Home News

2 Responses to “PF has contracted record debt”

  1. Mark Simon Lungu says:

    Zimbabwe is in ecconomic crisis Zambians know that,of course it may be for different reasons.The debts being incured deliberately by PF government is driving this country to the same situation where Zimbabwe is today.Zambians should not allow this to happen,show your displeasure through the ballot and stand up and be heard.


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