What Chishimba Kambwili Was Proposing Is Attainable – Financial ExpertDear Editor,I have listened carefully to the audio recording between Chishimba Kambwiliand the Bank of Zambia Governor, Chris Mvunga. I have also read ChishimbaKambwili’s write-up that provides background to his proposal.I understand structured finance very well (at SARS I was a Structured Finance Specialist) and removing politics, Kambwili’s suggestion was smart and very doable. In a nutshell, Kambwili was merely suggesting shift of credit exposure from government to BoZ. Through BoZ, Government borrows from the market through issuance of Treasury Bills “TBs” (issued every 2 weeks through out the year) and Bonds (issued every month throughout the year). The money borrowed is intended to finance government expenditure requirements including paying suppliers and contractors. Many contractors and suppliers have not been paid for months even years for some and the Debt stands at $5 billion. This is despite the fact that Government raises money every 2 weeks and every month through issuance of TBs and Bonds respectively through BoZ. The challenge is that when BoZ remits proceeds […]
What Chishimba Kambwili Was Proposing Is Attainable – Financial Expert
