Govt has NOT pledged any public asset as collateral-Mwanakatwe

Finance Minister Margaret Mwanakatwe has reiterated that no collateral in the form of public assets has been provided for borrowing and none of the sovereign guarantees has been called upon by the creditors.

Delivering a ministerial statement to parliament on the country’s debt situation, Mrs. Mwanakatwe says the takeover of any asset by another government is neither practical nor feasible.

Mrs. Mwanakatwe adds that there has never been any discussion related to a debt/asset swap between the Zambian government and any of its creditors, China inclusive.

She says government has not defaulted on any of its external commitments to the Chinese or other lenders and does not intend to do so.

Mrs Mwanakatwe has explained that the loan for the Kenneth Kaunda International airport is still being disbursed by the lenders, while the ZESCO loans from Chinese lenders in relation to the extension project of the Kariba north power station are duly on course.

She adds that with regards to the loan obtained for the digital migration program, a loan was obtained from China to ensure that the programme is implemented in the country, and that government is on course in servicing the loan.

She says ZNBC was never offered as collateral for the loan.

Meanwhile Mrs Mwanakatwe says of the country’s total external debt of 9.37 billion United States dollars, Chinese debt accounts for between 20 and 30 percent.

Meanwhile Mrs Mwanakatwe has announced that government has defined a Eurobond redemption strategy that will establish an optimal plan for redeeming the country’s bonds.

And the minister says the country is not under any debt distress as the current debt is sustainable and all those making falsehoods about the country being under debt stress should be ashamed and should stop it immediately.