A Financial Expert has attributed the termination of Bank of Zambia Governor’s contract by President Edgar Lungu to poor performance of bond markets lately.
Speaking in an interview with Money FM News, Munyumba Mutwale says this is the year that the bond markets needed not to underperform.
Mr Mutwale noted that a few weeks ago President Lungu stressed that he was frustrated that international banks are not lending and releasing capital for economic growth.
“The Governor unfortunately has been on an horribly thin line mainly driven by the fact that bond markets have actually being performing quite poorly, and this this is the year that it is in the most prevalent for the President,” he said.
“It’s not that the bond markets performed worse this year, but this is the year they needed not to under perform”
He said although the President was expressing concern about the 10 Billion Kwacha Stimulus Package established by the Central Bank, he was also aware of the performance of the bond markets.
“Looking at it from the Presidents perspective, looking at someone who has expressed themselves, if you go back a few weeks ago President Lungu pointed ut that he was frustrated that international banks where not playing ball by lending and releasing capital for economic growth,’’ Mr Mutwale explained.
“Although the President was expressing concern about the 10 Billion Kwacha Stimulus Package established by the Central Bank, he was also aware of the performance of the bond markets”
Mr Mutwale added that Dr Kalyalya only had 2 fully subscribed bond auctions this whole year leaving the government funds ‘dry’, noting that some auctions declined below 50 percent at a time of emergency where there is a desperate need for cash.

On Saturday, President Edgar Lungu dismissed Dr Denny Kalyalya from his position as Bank of Zambia Governor.

Dr Kalyalya has since been replaced by Christopher Mvunga who was Deputy Secretary to the Cabinet-Finance and Economic Development.