Written by on May 29, 2019



GOVERNMENT should urgently implement effective fiscal measures to put debt levels and debt service payments on a sustainable path, the Centre for Trade and Policy Development (CTPD) has suggested.

CTPD researcher Bright Chizonde said the development was a sure way to restore both domestic and international investor confidence.

In a statement Mr Chizonde said government should engage in extensive consultations with technocrats, private sector players, and intentional institutions to find remedial and long-term solutions to the current economic situation.

“CTPD is currently finalising a study on how Zambia can “Weather the Storm of Rising Public debt” with a focus on “Debt Re-Structuring in Zambia.” This study promises to generate critical information on possible solutions to Zambia’s debt situation through restructuring its current debt portfolio,” he said.

Mr Chizonde said in the absence of corrective measures on the part of the Ministry of Finance, Zambia continued to register reduced investor confidence and negative market sentiments.

He said this had increased pressure on monetary policy as indicated by an increase of yield rate on government securities.

During the first quarter of 2019, Treasury bill yield rate increased to 22.6 percent from 21.4 percent due to negative market sentiments associated with Zambia’s sovereign credit rating downgrade in February 2019.

Mr Chizonde had since said the current monetary policy committee, indicated that Zambia’s economic performance had continued to deteriorate on account of fiscal pressures limiting monetary policy interventions.

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