CHIBAMBA KANYAMA DESCRIBES K 8 BILLION BOND AS A FILLER
Written by newsroom on June 26, 2020
An Economist, Chibamba Kanyama has said that the K8 billion COVID-19 Bond as announced by president Edgar Lungu yesterday was one way of filling up the gap that had been created after the issuance of the k10 billion stimulus package loan to the private sector.
Mr. Kanyama revealed in interview with Flava fm news that the issuance of the COVID-19 Bond was to fill up the deficit that could have come about from the first k10 billion stimulus package.
Mr. Kanyama disclosed that there was an extra K8.7 billion above what was budgeted for external debt servicing, and that revenues had dropped by huge figures and total expenditure overshot.
He noted that this could be attributed to the devaluation of the Kwacha as it had hit the country in terms of revenue and that nation’s capacity to balance most of the problems.
“The Bond is Government’s way of trying to borrow money to fill the balancing gaps and there is need to give clear information on how to access it, in terms of its tenure and what the coupon or yield rate will be,” said Mr. Kanyama.
President Edgar Lungu announced yesterday in his address to the nation that Government had issued an K8 billion COVID-19 Bond to enhance economic activity in the nation.