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Wednesday, 4 March 2015

Zambia Debt Watch (Eurobonds, World Bank, ADB)

Government plans to refinance the existing Eurobond debt by issuing another bond. Ministry of Finance recently announced that GRZ “needs to issue another bond to pay off the debt and we will look for creditors that will lend on a low rate". Zambia has two sovereign bonds of US$750 million and US$1billion which are due to mature in 2022 and 2024, when the principal needs to be paid back on top of current interest repayments. (Source: The Post)

In the mean time, GRZ has borrowed U$104 for the Kafubu Water and Sewerage Company (KWSC) to help improve water supply in its areas of operation on the Copperbelt. KWSC says " the loan obtained is in line with the firm’s objective of improving services to all consumers through various projects". The money includes some unspecified proportion of grant. (Source : Daily Mail)

Water is clearly a favorite at the moment. The ADB also recently gave Zambia $16m loan to implement phase 2 of the National Rural Water Supply and Sanitation Project in Western Province. The project will fund water and sanitation in 16 districts. (Source : ZNBC). It is certainly an important area but one cannot help but recognise that the reason we are having to borrow is that we have failed to run provincial water utility companies. Many of them are riddled with severe debt and corruption.

The World Bank has joined in lending Zambia more money. It recently partnered with ADB to give Zambia $114m loan to finance the rehabilitation of Kariba Dam being undertaken by Zambia and Zimbabwe. GRZ says the project is critical to the region hence should urgently be undertaken to avoid potential emergency situations. Zambia has given the money to Zambezi River Authority who are running the dam with hope that it pay back.(Source : ZNBC)

World Bank has also given Zambia a separate US$67 million loan to improve the country’s universal health services under the Zambia Health Services Improvement Project in five provinces. Ministry of Finance says the financing agreement will strengthen referral linkages and advance progress towards maternal and child health millennium development goals, among other benefits.(Source: Zambia)

One can understand that Zambia is addicted to debt. What one fails to understand is why the World Bank and other international organisations keep lending money to a country that has refused to implement a debt national management strategy. It is completely indefensible for these organisations to give money to governments that refuse to be held accountable by its citizens through a proper and coherent legislative framework.

The World Bank should be lending money to countries which have a publicly accepted Debt Management Legal Framework in place. We are led to believe that the World Bank is a supporter of good governance. Lending money, even for good causes, without a proper legal framework for the people to hold Government to account is quite foolish to say the least. The hypocrisy of these multilateral institutions never cease to amaze.

AUTHOR
Chola Mukanga
Copyright © Zambian Economist 2014

6 comments:

  1. One can understand that Zambia is addicted to debt. What one fails to understand is why the World Bank and other international organisations keep lending money to a country that has refused to implement a debt national management strategy.

    But Cho, HIPC is so profitable.

    And what do Eurobonds, Privatisation and the World Bank have in common?

    Eurobonds (1) and Privatisation (2) were invented by the Rothschild Bank; and the head of the World Bank, James D. Wolfensohn, was in a joint venture with Lord Jacob, the 4th Baron Rothschild, called J. Rotschild, Wolfensohn & Co. (3)

    1) EUROBONDS

    In London, N M Rothschild & Sons took an early role in the new Eurobond markets.

    2) PRIVATISATION

    The 1980s gave birth to the international phenomenon of privatisation. Rothschild was involved from the beginning and developed a pioneering role which spread out to more than 30 countries worldwide.

    3) Source: A Global Life: My Journey Among Rich and Poor, from Sydney to Wall Street to the World Bank, by James D. Wolfensohn.

    " Meanwhile, after a fifteen year absence from the London banking scene, I returned to form a joint venture with my friend Jacob Rothschild. We called our enterprise J. Rothschild, Wolfensohn & Co., and our aim was to deliver our own personal brand of investment banking across Europe and in the newly opened markets of the former Soviet Union and Eastern Europe. As a business venture, J. Rothschild, Wolfensohn & Co. never really took off. The firm earned fees, did some deals in Russia, and eventually turned a profit, but >we dissolved the London partnership in 1995, when I joined the World Bank.

    If our venture achieved nothing else, for me its existence alone was significant. My connection and deep friendship with Jacob lives on, and he and his wife Serena, remain part of our lives. Today I share offices with Jacob in London, and he with me in New York."

    Also see: (The Economist) JAmes Wolfensohn: Banker to the world

    What I am saying is - the relationship between the Rothschild Bank (which also founded De Beers and was first chaired by Cecil Rhodes), the World Bank and the privatisation and eurobonds is not entirely free of conflicts of interest or hidden agendas.

    ReplyDelete

  2. Oh and there's more. Lady Lynn Forester de Rothschild, wife of Sir Evelyn, baron de Rothschild (former head of NM Rothschild & Sons), is also on the board of The Economist Group.

    As it would happen, it was also The Economist that funded the anti-Zimbabwe screed Mugabe And The White African. (And Morgan Tsvangirai was employed by De Beers when he was a miner. Zimbabwe could supply 20% of the world's diamond every year, through their Chiadzwa and Marange diamond fields, which is why Rothschild/De Beers is so interested in controlling their economy.)

    World Bank head James D. Wolfensohn was born on the the birthday of, and was named James in honor of, his father's employer James Armand de Rothschild. (James Armand de Rothschild and his father Baron Edmond James de Rothschild played a crucial role in the creation of Israel.

    KNESSET: " Baron (Edmond James) de Rothschild was a public figure, known as the "Founding Father of the Yishuv" (Settlement) during the time of the First Aliyah."

    KNESSET: " Baron de Rothschild demanded to remain anonymous and he was mostly known as "The known benefactor." "

    On the colonisation of Israel:

    Knesset: In 1924, Rothschild was appointed by his father, Edmond de Rothschild, as President of the “Palestine Jewish Colonization Association” and remained in this post throughout his life.

    In fact the Rothschild Barons' control over Israel is even greater than it is over South Africa. Rothschild Bank helped the British government buy the Suez Canal in 1875 resulting in billions of dollars in military aid every year for it's potential protection (see Israel's actions during the Suez Crisis if 1956), financed the settlements, and through De Beers' rough diamonds supplies Israel's Tel Aviv with the nation's single biggest export, finished diamonds from South Africa and Botswana.)

    Here James D. Wolfensohn is giving a speech on who really controls the world economy, including on Africa as a future source of 'global instability' (solved how - through depopulation?) - he doesn't envision people in Africa earning more than $2,000 to $3,000 a year, and of course within the Rothschild system (as opposed to the Zimbabwean system), they won't:

    (YOUTUBE) WORLD BANKER MAKES STUNNING CONFESSION

    By the way the reporter who questions him at about 18:50 is Greg Palast, who has his own website.

    - Correction: "(which also founded De Beers and was first chaired by Cecil Rhodes)". I should have said which was first chaired - Cecil Rhodes was the Founding Chairman of De Beers.

    You could say that the Rothschild Barons are the financial power behind colonialism, neocolonialism and globalisation.

    ReplyDelete

  3. Oh and there's more. Lady Lynn Forester de Rothschild, wife of Sir Evelyn, baron de Rothschild (former head of NM Rothschild & Sons), is also on the board of The Economist Group.

    As it would happen, it was also The Economist that funded the anti-Zimbabwe screed Mugabe And The White African. (And Morgan Tsvangirai was employed by De Beers when he was a miner. Zimbabwe could supply 20% of the world's diamond every year, through their Chiadzwa and Marange diamond fields, which is why Rothschild/De Beers is so interested in controlling their economy.)

    World Bank head James D. Wolfensohn was born on the the birthday of, and was named James in honor of, his father's employer James Armand de Rothschild. (James Armand de Rothschild and his father Baron Edmond James de Rothschild played a crucial role in the creation of Israel.

    KNESSET: " Baron (Edmond James) de Rothschild was a public figure, known as the "Founding Father of the Yishuv" (Settlement) during the time of the First Aliyah."

    KNESSET: " Baron de Rothschild demanded to remain anonymous and he was mostly known as "The known benefactor." "

    On the colonisation of Israel:

    Knesset: In 1924, Rothschild was appointed by his father, Edmond de Rothschild, as President of the “Palestine Jewish Colonization Association” and remained in this post throughout his life.

    In fact the Rothschild Barons' control over Israel is even greater than it is over South Africa. Rothschild Bank helped the British government buy the Suez Canal in 1875 resulting in billions of dollars in military aid every year for it's potential protection (see Israel's actions during the Suez Crisis if 1956), financed the settlements, and through De Beers' rough diamonds supplies Israel's Tel Aviv with the nation's single biggest export, finished diamonds from South Africa and Botswana.)

    Here James D. Wolfensohn is giving a speech on who really controls the world economy, including on Africa as a future source of 'global instability' (solved how - through depopulation?) - he doesn't envision people in Africa earning more than $2,000 to $3,000 a year, and of course within the Rothschild system (as opposed to the Zimbabwean system), they won't:

    (YOUTUBE) WORLD BANKER MAKES STUNNING CONFESSION

    By the way the reporter who questions him at about 18:50 is Greg Palast, who has his own website.

    - Correction: "(which also founded De Beers and was first chaired by Cecil Rhodes)". I should have said which was first chaired - Cecil Rhodes was the Founding Chairman of De Beers.

    You could say that the Rothschild Barons are the financial power behind colonialism, neocolonialism and globalisation.

    ReplyDelete
  4. And meanwhile Zambia, in the post-colonial era has bankrupted itself several times over...Rothschild again or just plain old Zambian mismamngement? I think I know.

    ReplyDelete
  5. I'm sorry Mr K your point is what precisely?

    Colonialism, neocolonialism and globalisation is not the issue here.

    The issue is ABC and his fanciful fiscal policies. That is it in a nutshell.

    Bo Nkulukusa has taken the rap for ABC.

    Fred

    ReplyDelete
  6. Fred Member: Colonialism, neocolonialism and globalisation is not the issue here. The issue is ABC and his fanciful fiscal policies. That is it in a nutshell.

    Why do you think he is so eager to give $600 million back to the mining companies?

    In some countries, the finance minister has actually worked for the World Bank, IMF or Goldman Sachs for most of their careers.

    The fact that the mines are not state owned is a big reason for this corruption.

    So who owns them instead of the state? GlencoreXstrata, Anglo-American Corporation, Vedanta, De Beers...

    ReplyDelete

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