The World Banks says Zambia is not in a debt crisis as purported in some sections of the media.
World Bank Country Economist Ziv Chinzara says negative sentiments circulating in the media suggesting that Zambia is in a debt crisis are unhealthy.
Dr. Chinzara says accurate reporting on Zambia’s debt issues is key in mitigating sentiments that have potential to increase the cost of debt servicing.
He says currently there are only ten African countries that are in debt distress which have arisen mainly by external shocks.
Dr. Chinzara says the media must ensure reports on debt in Zambia are based on solid foundation unlike where some reports are based on misinformation to the public and investors thereby creating uncertainty on the market.
He says accurate reports on any country’s debt standing are important as they enable investors make informed decisions.
Dr. Chinzara was speaking in an interview with ZNBC in Lusaka shortly after launching the World Bank’s eleventh Zambia Economic Brief dubbed Agro-Led Structural Transformation.
He has since praised government for implementing measures aimed at reducing its debt stock and further advised government to be releasing regular reports and information on debt to avoid distortion by the media.
And World Bank Country Manager Ina Ruthenburg praised government for announcing bold fiscal consolidation measures aimed at moving debt to sustainable levels.
Ms Ruthernburg said promoting debt sustainability will enable the country save resources to support the poor and unlock private sector growth.