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Their work isn't done and much as it doesn't appear the case they probably do have good intentions. Unfortunately we are in a hole because our debt became so unmanageable that others do not trust we can resolve things so refuse to give us reprieve.
Long thread incoming... https://twitter.com/kingmas77/status/1329073841717481474
Long thread incoming... https://twitter.com/kingmas77/status/1329073841717481474
Place your politics aside and understand our debt situation a little more. Zambia is now at an impasse. We have been trying to negotiate for our debt to be restructured but all our creditors want to be treated equitably. Lemme give an example.
Dude A has borrowed money from Dude B, Dude C, Dudette D, and Dudette E.
The money borrowed was used for loads of things and each loan had its own terms and conditions.
The money borrowed was used for loads of things and each loan had its own terms and conditions.
Dude B terms - Dude A was to pay back every month
Dude C - Payback every quarter
Dudette D - Lump sum in 2 years but the money would immediately come due if Dude A failed to pay either Dude B or C before then
Dudette E - Payable 5 months after Dude A buys a car to be a taxi
Dude C - Payback every quarter
Dudette D - Lump sum in 2 years but the money would immediately come due if Dude A failed to pay either Dude B or C before then
Dudette E - Payable 5 months after Dude A buys a car to be a taxi
Now Dude A prioritised the payments of B and C as their dues came sooner. However after a while Dude A started to face problems paying these guys. They understood though... something about a fire at A's business. "It could happen to anyone," they said.
But in time B, C, D and E heard rumors that Dude A borrowed from a Don F as well and Don F gets their money every day, despite the excuse of a fire. So the others are like WTF?
This is where the pressure comes in. Everyone starts asking why Dude A isn't paying them but is able to pay Don F. Dude A insists that there's not Don F and everyone should understand. Dude A says okay I'll pay you guys B and C but now D and E are like saht exsay
D is like in fact since you failed to pay B and C you owe me my sheets today. And E is like yeah elo you instead of buying a cab you just took some guza out. I also want my sheets. So basically it became wild for Dude A and eventually he said okay since you want me to be fair
I'm keeping all my sheets until you all calm down.
So that's basically where we're at. Why did we fail to pay to begin with? Lack of planning, over estimating expected returns, the slowing of China's growth, droughts, overambition, poor money management, poor leadership etc.
Can we get out of this rut? Yes. It'll take a concerted effort but it'll be difficult because we are so polarized. In spite of your views, however, please remember any future leader is going to inherit this same mess so it's important you understand what they will get into.
This way you know what to demand of them and if they are clear with their policies what to expect from them.
