Thursday, March 28, 2024

Governments continued borrowing is a source of concern – JCTR

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The Jesuit Centre for Theological Reflections (JCTR) says Government’s continued borrowing is a source of concern.

Commenting on government’s issuance of a second sovereign bond on the international capital market amounting to US$1 billion, JCTR Director Fr Leonard Chiti said it is worrying and at the same time scary that government has gone ahead to issue a second sovereign bond before it even pays back the first $750 million Eurobond.

Fr. Chiti said Zambians are not against borrowing but that what they are against is irresponsible borrowing.

He said the country runs the risk of falling back into the debt trap at the level government is borrowing.

He added that much as government has outlined where the money will go, it should also find other means of funding those sectors instead of resorting to borrowing.

Fr. Chiti said government should also ascertain whether the country is in a position to acquire more debts and be able to pay back.

Fr. Chiti has further urged the government to be transparent in their borrowing and make sure that what is being borrowed is used for the intended purposes.

[QFM]

8 COMMENTS

  1. these 1diots are just borrowing to line up their pockets, the $750 million first bond there is nothing to show for it. not even accounting for it, yet they go get another for what? state house project? of a mini clandestine hospital?

  2. Va Father i was even dismayed to hear a Minister of boosting of kalova.Where on earth can you be proud of kalova?
    Even in homes people only get kalova when they are stranded and have an emergency to attended to and people do this when there is no alternative way to go about it.
    My question is that are we in such a crisis that we need so much as kalova and the government has no other means to get revenues.What has happened to the grants the country used to get from cooperating partners?
    We need an explanation from the government on the scramble for Kalova by this PF government.
    Can the Minister of Finance give us the breakdown of how the us $750 has been used and if the $40m borrowed for salaries from railways has been paid back.

  3. “Greece’s deputy prime minister Evangelos Venizelos said demand for 3bn euros (£2.4bn) worth of five year bonds proved the country’s debt is sustainable.

    Greece is retuning to the capital markets for the first time since its economy nearly collapsed in 2010.

    The Greek government had initially priced the bond to provide a return of between 5% and 5.25%.

    But with investor orders running at 20bn euros (£16.5bn) it was able to lower the yield to 4.95% – far lower than analysts had expected. ”

    GRZ boasting about confidence in our economy when even greece can out do zambia by far despite being considered broke! what does this say about the real perception of the zambain economy: investors have less confidence in Zambia than the worst european economy!

  4. The nkongole is for PF party mobilisation indirectly towards 2016 elections. Quick, substandard and overpriced roadworks and structures for newly created districts and clinics to appease voters. The remainder will be used by PF cadres who will flee the country when PF loses the election in 2016 to support their livelihood in Cuba and Sudan.

  5. Loans must fund infrastructure development. That is what government is doing. It is wrong to express phobia against meaningful development financing. The nation can build basic infrastructure at a rapid rate through responsible borrowing.

    • The catch is in what you said @Dr Kasonde, “… meaningful development financing.” Who defines this? Classic case of what comes first, the chicken or the egg? A healthy population or a highly developed infrastructure? Our water and sanitation levels are abysmal. Well and good to have modern highways but whats the point if the population is unhealthy and lives in squalor?

  6. We have people who are lazy in this government. How can on tell for sure that our ministers are lazy and useless. They do not create wealth , but go the easy and expensive route of borrowing. Look at Sampa all he is interested in are the commissions he gets at the end of closing the kaloba deals. Then he goes to the poor people of Matero that he has made a donation a fraction out of what he makes in such transactions.

    • Totally agree. Very few if not none of the current ministers is innovative and would point to anything in the economy that was their brain child. Wonder even in their constituencies what development they have delivered. Typical of the Zambian practice of, when a few peeple go into something, everyone is there. Roads is the curreny currency for measure of development. Every MP will point to a raod being patched as development having been brought to their people. None think of creating/promoting concerns that will add value to our base products. Indeed these MP’s and ministers are USELESS

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