Minister of Finance Felix Mutati says cabinet has resolved to suspend new non-concessional borrowing.
Mr. Mutati says cabinet this month also issued and gave clear policy directive such as developing a new financing profile.
The Minister says the new financing profile will ensure reduction in debt distress from high to moderate over the medium term and further ensure the debt remains sustainable thereafter.
Mr. Mutati says cabinet also resolved that no commercial contracts that require debt financing should be signed without treasury authority.
He says it was also resolved that tender and legal approvals should not be given where funds are not available.
The minister was speaking in parliament today when he gave a ministerial statement on the state of engagement with the international monetary fund-IMF.
He said it is the task of government to ensure it borrows within its capacity to pay and refocus expenditures while enhancing domestic resource mobilisation.
Mr. Mutati says government has resolved to have an IMF supported program adding that the nation will be updated on a regular basis.
He says the major outstanding issues under discussion with the IMF are the need to take measures to slow down the pace of debt accumulation and return Zambia’s debt risk from high risk of debt distress to low risk.