Friday, February 23, 2024

PMRC commends the Government over Debt Swap for Civil Servants


The Policy Monitoring and Research Centre (PMRC) has praised government for initiating a debt swap with civil servants as it will give relief to public service workers and increase lending to the private sector.

PMRC Executive Director Bernadette Deka-Zulu said the development will ease the burden civil servants face in making loan repayments to financial lending institutions.

Mrs Deka-Zulu said in a press statement issued to the media that the initiative will also provide liquidity to financial lending institutions to lend to the private sector for investment in other productive sectors of the economy.

She said various loans and debt owed to public service workers have a negative impact on the daily survival of civil servants and the operations of financial lending institutions.

“Government through the Ministry of Information and Broadcasting on the 16th of July 2021 announced the debt swap between Government and civil servants as a way to ease the burden in loan repayments to financial lending institutions. It is well known that deductions from civil servants’ salaries are heavy and have adversely affected their productivity and service delivery,” said Mrs Deka-Zulu.

Mrs Deka-Zulu said the debt swap is timely and shows commitment on the part of government to address the plight of civil servants arising from the impact of loans and debts have on their survival and work performance.

“PMRC commends Government on this move as restructuring public service workers debt will ease financial burden during the pandemic by increasing disposable incomes through adjusting repayment periods with reduced interest rates in comparison to commercial rates charged by banks and other micro finance lending institutions. This measure is likely to boost the confidence of workers and consequently improve productivity and quality service provision in the civil service”, said Mrs Deka-Zulu.

She pointed out that the move by government to undertake a debt swap is legal as it is within the confines of laws that govern the employment code of civil servants right to bargain conditions of service through the Industrial and Labour Relations Act Cap. 269, part vii of the laws of Zambia.

Recently, Ministry of Information and Broadcasting Permanent Secretary Amos Malupenga announced that government had undertaken a debt swap with civil servants.

The debt will be taken over by the Public Service Micro-Finance Company which is a government institution that currently provides loans to civil servants at low interest rate which presently is at 5 per cent.

Mrs Deka-Zulu commended government for negotiating with financial lending institutions to freeze loan deductions on the pay slips of public service employees to allow for reconciliation of outstanding loans and debts.

Debts of public service workers that will remain owing to financial lending institutions after reconciliation will be transferred from financial lending institutions to the Public Service Micro-Finance Company.

Mr Deka-Zulu also praised government for releasing K200, 000,000.00 to settle various amounts owed to civil servants such as leave travel benefits, long service bonus, gratuities and other personal emoluments.

She observed that the debt swap has been formulated in line with policies and strategies that support government’s efforts of dismantling domestic arrears to ease liquidity in the economy.

Mrs Deka-Zulu said the debt swap will ease financial pressure of public service workers, and ultimately benefit the private sector by increasing the availability of financial resources to Small Medium Enterprises (SMEs).

She said the debt swap is another measure by the state to cushion the adverse effects of COVID-19 on the public service workers, SMEs and the Zambian Economy.

“Since the breakout of the COVID-19, government has implemented such measures of easing liquidity in the economy, which includes among others, paying off retirees and provision of COVID-19 stimulus packages,” said Mrs Deka-Zulu.

The PMRC Director stressed that this debt swap is a step towards the realization of the aspirations of the Economic Recovery Programme (ERP 2020-2023) where government intends to dismantle domestic areas and achieve macroeconomic stability.


  1. Some civil servants loan deductions do not appear on their payslips, some micro finance institutions resorted to DDAC where they effect deductions when once someone’s salary enter the bank account, this was after govt started failing to remitt deducted money on time. I also see a situation in future where civil servants payslips with be showing all the money, but getting zero salary , remember even after this debt swap they will still be getting more loans from other financial institutions who will deducting direct from their bank accounts. Hence more debt and they get entangled in a debt trap

  2. So the PF is relying on a critical mass of clueless folk who are in dire situations to appreciate their soon-to-be blunder. This PMRC is actually helping with baiting. This is dangerous and irresponsible. Best PMRC can do is zip it and watch the landscape unfold. It will not be pretty I promise you.



  4. Negative
    This swap is one of those political gimmicks that got MMD employing in parastatals regardless of these firms bottomlines.
    Yes the debt swap will politically go ahead but the implications are huge.
    You may think that in a politically charged period opposition promise mountains and those in power needlessly go overboard.
    Unfortunately this is what you get in a 5year tenure and unfortunately this makes PF favourable in this run up to elections.
    In the end wadya nkuku iwe teacher. I hope this could extend to other civil servants. My issue is these luckies will go borrowing for the bottle yet again.

  5. My issue is these luckies will go borrowing for the bottle yet again. Only a hand full will skip the bottle and do something meaningful.

  6. What do you expect from this PF bootlicking girl Bernadette Deka-Zulu…she can not manage her own finances as she was in debt all she can do is beat the drum for PF hoping the throw some seminars in her way.

  7. This is someone who couldn’t pay off a loan she obtained of course she would welcome such schemes even though they will cost the taxpayer and the borrower more…these are reckless ill-qualified cadres who will do anything to get business from GRZ.

  8. A reckless govt that can not manage its own debt and is constantly knocking on IMF door in Washington for help wants to help manage your debt…this is really laughable

  9. Even @This Thorn in the £$% has come to his senses …meanwhile the UK based troll is still trying to justify his credibility …really laughable

  10. I am in Kitwe and we have just recieved 5000 people who have defected from UPND to pf.

  11. Amos has misunderstood his job, he has joined PF who are fvcking civil servants and Miners this month. Now Denga she also what a doggie for campaign money.

  12. Civil servants are not to have found themselves in such huge debts if the people who were managing the govt payroll were serious. Before the employee is given a loan the application form is taken to the supervising official to verify and confirm if the applicant has the ability to service the loan or has other outstanding loan obligations. In addition there is a thresh hold where a worker should not borrow above 35% of his salary. In most cases these civil servants went on rampage to the extent of even forging pay slips in collaboration with people in accounts or personnel officers. A simple audit of the application forms will bring to light a lot of irregularities no wonder even the govt has fold itself in a huge debt because the technocrats who are supposed to have given professional…

  13. This is the lady that failed to settle her huge debt and what good advice do you expect from her. These are just paper tigers specialized in copy and paste statements and twisting the Queen’s language and in turn offer no solutions. These are the chaps that has messed up the once Mighty PF and even HH and UPND Alliance should be very careful when making appointments or else they will continue showing fake loyalty to the govt of the day yet deep inside their hearts ba Kwapula BIG. We have been there and still observing. We know them very well maningi ba musela kwakaba.

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