The Economic Association of Zambia (EAZ) has expressed happiness with government’s intentions to reduce on its domestic borrowing by next year.
EAZ President Mwilola Imakando says the move will go a long way in improving the economic performance of the country by attracting more private sector investment.
Speaking in an interview with ZANIS in Lusaka today, Dr. Imakando noted that the reduction in domestic borrowing will make more money available for the Private sector hence improving the economy.
He explained that if government continues to borrow from commercial banks the private sector will not have enough money to invest in various sectors of the country’s economy.
Dr. Imakando said government’s move is important because the private sector will be given a chance to access more money from commercial banks.
He said this will also assist commercial banks to reduce on their lending rates there by benefiting many local people economically.
He further added that this will also compel the private sector to invest in important sectors such as in infrastructure.
Meanwhile, Dr. Imakando has appealed to commercial banks in the country to reduce further their lending rates if the sector is to be more competitive.
He noted that Zambia’s economy has the potential to perform well if only the banking sector can be made more competitive.
He since praised the government for continuing to record growth in the economy of the country despite many challenges that came with the global economic down turn.
Dr. Imakando has also cautioned people in the country against making statements that can scare away investors and disturb the economic environment of the country.
Currently Government borrows about K620 billion in treasury bills and government bonds per month.
Government has announced that its intentions to reduce on it domestic borrowing and attract more private sector investment in the economy.
ZANIS
It’s about time we had a government that lends and does not borrow all the time. This should be RB’s goal if he’s going to expect people to vote for him again.
This is the way to go. We all know however that it is easier said than done.
A bunch of MMD cadres.
EAZ should have asked if this means that the budget deficit will be reduced. Because if government just shifts to a new lender then we are still in problems.
There are a few blogs on this very important topic and most of them seem to be non-partisan rational intellectual comments – is this because the topic is beyond PACT cadres????
This is a well intended move aimed at improving the country’s economic performance. PF cadres have nothing to offer because reasonable issues are beyond their comprehension.
It is not correct to state that the treaury borrows K610 billion monthly. That is what is project per annum (about 10 percent of the budget). If it were borrowing that much monthly, we would be talking of K6 trillion per year (which is the total government indebtedness).