ZAMBIA’S EUROBOND TIME BOMB IN 2022 AND 2024 (PF’S WORST ACT IN POWER)
Even as terrible as things are in Zambia today, we potentially have darker days ahead. 2022 to 2024 will be difficult years for our country
Mid next year our first Eurobond debt of K16 Billion is due for repayment and in 2024 the second Eurobond of K28 Billion is due for repayment.
These loans were obtained by the PF government and have been squandered with nothing to show for it.
For example, $120 Million of the Eurobond was given to Zambia Railways Ltd to buy new trains and revamp the rail tracks, to this day we can’t see these things, so where did the money go?
$60 Million was allocated to revamp Nitrogen Chemicals of Zambia, with all that money they did nothing. Zambia is still importing fertilizer at extremely high prices through PF connected middlemen, which results in higher agricultural input costs and higher food prices.
NOTE: President Hakainde Hichilema has pledged to completely cut out these middlemen which will reduce fertilizer prices.
Zambia has no capacity or ability to pay these debts, we all know that.
So what will happen when these debts fall due?
Realistically there’s only one way out of this problem, and that is an IMF Bailout.
The IMF Bailout will enable Zambia to refinance its debt, obtain lower interest rates and extend debt repayments over a longer period of time.
As soon as elections end, President Hakainde Hichilema and his government will be locked in months of negotiations with the IMF to avert this impending catastrophe that has been created by the PF.
In the absence of an IMF Bailout, the Zambian economy will inevitably and completely collapse and crash in July 2022 when the debt becomes due. The kwacha will completely lose value and prices will skyrocket, companies shut down and unemployment will increase.
It’s therefore imperative that a change of government is achieved and effected in the forthcoming General Elections.
Hakainde Hichilema is the only Presidential candidate prepared and with the International credentials to handle this problem.