PF didn’t pledge assets as collateral when obtaining loans – Dr Musokotwane

By Nation Reporter
THERE were no assets pledged as collateral by the former administration, the Patriotic Front (PF) when it obtained loans, Minister of Finance Situmbeko Musokotwane told Parliament yesterday.
And Dr Musokotwane told the House that the Kwacha was going to gain more and become stable against major convertible currencies because of the debt restricting.
Responding to a question from Chama North Member of Parliament (PF) Yotam Mtayachalo, after he presented a ministerial statement on the debt restructuring, Dr Musokotwane said there were no assets pledged by the PF.
Mr Mtayachalo asked the Minister of Finance what collateral Government had attached to the debt-restricting process.
“While debt restructuring brings in a lot of benefits such as improved cash flow and avoiding forfeiture and bankruptcy, it has also has also got some disadvantages. Has the Government attached any particular assets to this debt?” he asked.
Dr Musokotwane said on the debt that the Government had required there was no pledge of assets.
“We have looked through the debts that were acquired by the PF Government, there was also no asset pledge that we have seen. So, the fear that we have is not warranted,” the Minister said.
Dr Musokotwane said the new dawn administration had decided to proceed with Lazard and other advisors which were procured by the PF so as not to disrupt the process of debt negotiations.
“We found this arrangement in place …rather than disrupt things, it was prudent to proceed. If something was working, whether it came from UNIP, MMD, PF we will work on it if it is good,” Dr Musokotwane said.
He said this in response to Kabwata MP (UPND) Andrew Tayengwa who wanted to know if the new dawn administration was going to re-negotiate the US$ 5 million settled for the former administration the PF for the services of the French financial company.
And in his statement, Dr Musokotwane said the debt restructuring secured by the Zambian Government delivered to close to a 40 percent of reduction of the country’s debt.
“On June 22, 2023, France, China, and South Africa (as deputy chair) and the IMF [International Monetary Fund] and World Bank stood with us. It has been a challenging journey …Lazard and other advisors also stood by us. Thanks to President Hakainde Hichilema his visionary leadership. This is the upward direction of development of the country. We appeal to people’s support,” he said.
Dr Musokotwane said because of the debt restructuring, Zambia would receive more support from the IMF and the World Bank.
Meanwhile, Minister of Foreign Affairs and International Relations Stanley Kakubo told the House in a Ministerial Statement that President Hakainde Hichilema represented Zambia well during his trip to Ukraine and Russia with other African leaders in a bid to broker peace.