Socialist party president Fred M’Membe says it is an embarrassment to the nation that the minister of finance Dr. Bwalya Ng’andu lied to Zambians about his engagement with bondholders.
Speaking when he addressed journalist today Dr. M’membr noted that 40% of bondholders have immediately refused to grant Zambia debt servicing suspension.
And CUTS acting national coordinator Ishmael Zulu says the default that Zambia has made towards servicing its date will negatively affect the performance of the kwacha and the way of doing business for the majority Zambians.
Mr Zulu added that as Zambia will experience high levels in the cost of doing business which shall results to the falling of the kwacha and the expected raise in the purchase of fuel.
Meanwhile finance Minister Bwlaya Ng’anda says government default on the interest payment of 42.5 million dollars to the Eurobond holders because it did not want to discriminate external lenders.
Ng’andu who addressed parliament today added that IMF will pick the favorable program that will help Zambia mitigate from its economic shocks.
Zambia owes an external debt of 11.9 billion dollars will domestically the debt stands 114.3 billion dollars.