Zambian Govt broke

The Zambian government is broke a situation that has triggered a number of of events including the Univerisity of Zambia (UNZA ) students demonstrations last night and a possible blacklisting of civil servants from borrowing from commercial banks.

Failure by government to pay student allowances led to a demostration by UNZA students last night who also protested against delayed enactment of the new constitution. The cashless status of the country has also led to commercial banks contemplating blacklisting lending to civil servants especially in the defence and security wings because government is inconsistent in terms of remitting deductions on loans to various commercial banks. The credit rating bureau may reconsider recommending defence and security staff from obtaining loans.

“The government is broke. That is why there were demostrations last night at UNZA we can not pay student allowances. So students took advantage of that and some brought in the issue of the constitution. Even the Credit Rating Bureau may reconsider recommending some staff especially from Defence and security wings from borrowing from commercial banks because the government is deducting from these people but at times not remitt the same to commercial banks. Things are not good. That is why Minister of Finance Alexandra Chikwanda wants increased domestic borrowing the source said. If the situation is allowed to continue, this means that Soldiers, Police officers and intelligence officers may have problems obtaining loans from various commercial banks.

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