…debt is manageable, for infrastructure development
By JIMMY CHIBUYE
PRESIDENT Sata says Zambia’s debt is “very sustainable” over the medium to long term.
Mr Sata said on his Facebook page yesterday that consistent with an analysis done earlier by the International Monetary Fund (IMF) Debt Sustainability Analysis (DSA) in 2012, Zambia’s debt is sustainable.
“In this regard, our country’s risk of external debt distress remains low as all debt indicators are below the indicative policy thresholds throughout the projection period of 2012 and 2032,” he said.
Mr Sata emphasised that all the borrowing done so far has been for the improvement of Zambia’s infrastructure.
President Sata said the improvement of the infrastructure will ultimately boost economic growth, increase revenue collection and improve the living standards of Zambians.
“However, I want to agree with the proposal for us to monitor the growth of our debt, particularly non-concessional borrowing, to ensure continued debt sustainability,” he said.
President Sata said Government has never borrowed for consumption but only for capital investment.
He said Zambia will never be the same on completion of the infrastructural revolution the Patriotic Front government has embarked on.
“More areas and regions are opening up for trade and investment, thereby enhancing the trickle-down effects to all our people, especially those in rural areas,” he said.
Mr Sata said people raised concerns on Saturday when he gave out a preliminary outlook on Zambia’s economy.
He said some people had the perception that Zambia is slipping into a huge debt crisis but he has assured that Government is doing everything possible to ensure the country does not fall into a debt crisis.
On Saturday, President Sata said Zambia’s economy will continue to grow as his government has continued to promote a stable macro-economic environment.
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