EAZ applauds the government’s debt handling

The Economics Association of Zambia (EAZ) has applauded President Hichilema’s government for its consistency and transparency in servicing the country’s external and domestic debt.

The Ministry of Finance and National Planning recently announced that it had released K15.8 billion to finance public service delivery, of which K5.5 billion was allocated to debt servicing.

The ministry revealed that of the K15.8 billion, K2.8 billion went to domestic debt, K2.6 billion to external debt, while K80.7 million went towards dismantling arrears to various suppliers of goods and services.

In response to the statement, EAZ National Secretary Dr Nicholas Mainza told reporters that Zambia was on the right trajectory to reduce its debt burden, as the country was coming from a situation where debt servicing was poorly timed, leading to default.

“We must commend the government for timely remittance of the funds to service debt, as well as transparency and discipline,” said Mainza.

Dr Mainza also welcomed the government’s efforts to dismantle arrears owed to various suppliers of goods and services, as they were key players in the circulation of money in the economy.

When [the debts] are being serviced, when [businesses] are being given what is due to them, what is being owed to them by the government, it entails that you are going to have money in circulation and that releases the pressure on the government itself,” concluded the EAZ National Secretary.