In the last few days there have been reports in some sections of the  media that the Zambian Government has received unsolicited offers from
 foreign investment agents popularly known as ³Vulture Funds² to buy  off the country¹s external debt. The media reports have made specific
 reference to the already contracted debt particularly the Eurobonds.
 
 
 
 Government would like to categorically state that it has no plans for  any sale of its debt to any investor. The Government is fully
 committed to the conditions and principles under which the debts were  contracted. This means that Government will remain in the
 international debt market and honour all its obligations as they fall  due. A testimony to this, is the establishment and operationalisation of
 the Sinking Fund in the current fiscal year.

 Government is further, developing a Medium-Term Debt Strategy to  ensure that it has a coherent and well-structured way of dealing with
 debt and its associated risks. In this respect, the assertions by some  commentators that this ³revelation of offers by Vulture Funds² is a
 realization by the Zambian government that it was in error to borrower  from the commercial capital markets are unfounded and misleading.
 
 I wish to reaffirm that borrowing in Zambia is strictly guided by the  Loans and Guarantees Authorization Act, Cap 366 of the Laws of Zambia
 that has set procedures for borrowing and has enshrined authority to  borrow on behalf of the Republic in the Minister of Finance. Further,
 application of such debt has largely been to investment, growth and  poverty reduction supporting projects such as those in energy,
 transport and communications, and social infrastructure namely health  and education. We are confident that these huge investments will give
 increased economic activity that in turn gives the country the capacity  to repay the debts.
 
 In this regard, the general public and the international investor  community, that has shown confidence in Zambia¹s creditworthiness, is
 assured of Government¹s continued commitment to respect the principles  under which the debt was issued. The Government also wishes to inform
 the investor community that it is committed to putting in place a debt  strategy that will in a sustainable way support investment in key
 growth areas such as agriculture, manufacturing, tourism and mining  for increased job creation and poverty reduction. The country¹s
 outlook is strong despite the current external and transitory  challenges, and we are positive and remain resolute to honoring our debt
 obligations as they fall due.