Magande tells PF to respond to IMF fear of another debt trap

 

Former Finance Minister Ng’andu Magande has charged that government should state clearly its position on worries by the International Monetary Fund (IMF) that Zambia will slip into another debt trap.

Speaking in a telephone interview with QFM News, Mr. Magande says it will only be fair and good enough for government through the Ministry of Finance to tell the nation if Zambia’s debit is sustainable.

Mr. Magande explains that he is on record having advised government several times not to continue over borrowing as the country risks falling in a huge debit trap.

He says he is only hopeful that government will now take the words of the IMF more serious and stronger as they have failed to listen to advice from different stakeholders on continued borrowing.

The IMF fears the 10 per cent increase in total public debt in the last two years might plunge Zambia into another debt trap.

And International Monetary Fund (IMF) has warned that Zambia will next year borrow money at a higher interest rate after rating agency fitch downgraded the country’s credit rating to b from b-plus on the country’s crumbling government finances and expectations that the deficit will remain high.

 

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