FINANCE MINISTER CLARIFIES ZAMBIA WILL ONLY PAY LAZARD FERES AROUND $6 MILLION FOR DEBT ADVISORY SERVICES
Finance and National Planning Minister Dr. Situmbeko Musokotwane has clarified that Zambia will only pay Lazard Feres around $6 million for debt advisory services as opposed to recent media reports suggesting that the amount has risen to $45 million.
Speaking on Friday`s edition of Let the People Talk Program on Phoenix FM, Dr. Musokotwane explained that the $45 million dollars reflected in the debt restructuring agreement is a standard practice consent fee to the creditors.
And Dr. Musokotwane says in the absence of the debt restructuring, Zambia would have paid $5 billion in debt this year alone against a national budget of $7.5 billion which would have collapsed the country’s economy.
He has further disclosed that the creditors rejected the idea of completely writing off Zambia’s debt instead opting to stretch the debts over a period of up to 30 years with relaxed conditions that Zambia can afford.
Meanwhile, Dr. Musokotwane says Zambia’s mining tax regime remains relatively high and has not provided any tax breaks to mine owners compared to other mining nations like South Africa and the Democratic Republic of Congo.