Finance Minister Felix Mutati said that the country’s economic fundamentals are brightening up and are expected to remain stable next year.
Speaking during a media briefing, Mr. Mutati however, stated that the country is still grappling with debt sustainability.
He says beyond major tax revenues, and non tax revenues that augment the Zambia Revenue Authority’s efforts, the county still has had draw backs in the implementation of fiscal devices and resource mobilization.
He however, says that the ministry is coming up with ways of dealing with domestic resource mobilization.
Mr. Mutati adds that another challenge the government has been faced with is fiscal consolidation.
He says the government cannot spend money which it does not have, and neither can it borrow beyond its capacity to repay.
Meanwhile Finance Minister Felix Mutati says the Bank of Zambia has now reched an agreement with shareholders of Intermarket Banking Corporation Zambia Limited on how to restoreb the bank to its solvency and long term sustainability.
Mr Mutati told Parliament in a ministerial statement that the shareholders comprise a consortium that includes the Industrial Development Corporation (IDC) and the Madison Group among others.
Mr Mutati has also disclosed that a management team headed by an interim managing director has been identified by the shareholders and has since commenced work with a view to opening the bank expeditiously.
He adds that the interim managing director will in due course announce the reopening modalities and associated timelines.
Meanwhile Mr Mutati says for the first five months to May 2017,revenues collected including taxes amounted to K16.67 billion against a budget amount of K18.46 billion representing a 10 percent underperformance on aggregate.