ON PUPPETS and their STRINGS
[A Comment from.Guardians of ZAMBIA]
By Dr Canisius Banda
‘…it is not that we don’t want to service the debt, it is just that the creditors have said: “Don’t pay for now”‘ Zambia’s finance minister Situmbeko MUSOKOTWANE is said to have said explaining the need for a ‘supplementary budget.’
First, when a creditor places your repayment on hold, Mr Situmbeko MUSOKOTWANE, sir, that in itself constitutes DEBT RELIEF,. It is a form of debt relief.
In essence, what this means is that the creditors have extended a financial subsidy to Zambia.
Therefore, the ttrending headline in Zambia today should not have been that the ‘DEC Goes Bananas’ but that ‘Zambia Receives Interim Debt Relief.’
Second, what is in it for the creditors to offer Zambia this relief?
What profit are they making through this action of theirs?
Therefore, Zambia’s finance minister Situmbeko MUSOKOTWANE must now explain ito the nation n detail the conditions set by the creditors for this repayment delay – for how long will it last, what fiscal conditionalities are we to follow, what is its cost, when are we expected to restart the servicing, is this a leverage ftool or our political management by them, what are its full implications, etc.
Hahahahaha!
Ati they have told us that ‘don’t pay for now’.
Really? Just like that?
Where is the CREDITORS COMMITTEE”s letter on this? Show us.
And by allowing us to increase government expenditure by, for instance by our ongoing worsening of the PE to GDP ratio, without a corresponding increase in our net national income, these creditors may actually be luring us deeper into the debt trap.
For example, ceteris paribus, just a sudden restart/recall of the repayments will see our fiscal space critically suffocating.
Is this an imperial ruse?
MUSOKOTWANE, tell us.
Mwebantu, are we really in control?
In the end, what we really need as a country is SOVEREIGN DEBT MANAGEMENT, NOT chifundo.
Zambia is NOT insolvent.
A wise liquidation [financial translation] of our resources is all we need.
Over time, Zambia can pay back whatever it owes. And still remain with much more.
Manje we have reduced ourselves to a BEGGAR STATE, always grovelling.
Tulo.
PILGRIM